8th April 2008 Currency Update: Surprisingly weak housing data causes sterling to slip further

Sterling fell this morning sliding near a record low against the Euro after surprisingly weak UK housing data fuelled speculation of an aggressive interest rate cut by the B of E this Thursday.

Halifax, the nation's largest mortgage lender, announced figures that showed house prices in Britain fell 2.5% in March, posting their sharpest monthly decline since September 1992 and suggesting the deterioration in the housing market may be speeding up.

Analysts said more evidence of a struggling housing market, which is already showing signs of damaging consumer spending and the economy as a whole, suggests a deep B of E rate cut may be needed when the central bank's MPC announces its rates decision this Thursday.

Right now Interbank is at 1.2543

source IFX