Sterling's slide continuous

Sterling dipped to a new 2021 low against the US dollar at one point yesterday as expectations that the Bank of England will raise interest rates next week waned because of the new Plan B restrictions to slow the spread of the emergent Omicron variant

Money markets are now assigning only a 46 per cent probability of a rate increase next week, down from 58 per cent before the news and a near 70 per cent probability two weeks ago.

Matthew Fell, chief policy director at the organisation, said: “Fresh restrictions are a significant setback for businesses, particularly for those in hospitality and retail who are in a critical trading period, as well as transport.

The FTSE 100 slipped 2.85 points, or 0.04 per cent, to 7,337.05, still up 3.9 per cent so far this month.

Frances O’Grady, general secretary of the TUC, said: “Requiring people to work from home over the busy Christmas period will hit jobs — unless ministers bring back furlough.

“It will be vital that the impact of these restrictions is closely monitored and that the government is ready with targeted support as required.”

Before last night’s Downing Street announcement, the pound fell 0.5 per cent to $1.3162, its lowest since 2020.

“While Covid certification can support public health, careful implementation and enforcement will be required to assist businesses affected.

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