Tuesday, 24 March 2015 18:36
LONDON: Sterling fell to a one-month trough against the euro and a day’s low against the dollar on Tuesday, after data showed British inflation dropped to zero last month, its lowest since records started.
Consumer price inflation dropped to 0.0 percent in February from an annual rate of 0.3 percent in January, the Office for National Statistics said.
Sterling hit a low of $ 1.4917 after the data was released, having traded at around $ 1.4945 beforehand. It also fell against the euro, with the single currency rising 0.4 percent to 73.63 pence, its highest since Feb 23.
Analysts said the data is likely to bolster expectations that the rates in the UK will stay lower for longer. Currently, investors are factoring in the the chance of the first rate hike in mid-2016, having pushed it back from early 2016 last week.
Copyright Reuters, 2015
