Sterling stalls amid interest rate concerns

Sterling came under selling pressure amid renewed Brexit fears and comments by a Bank of England official that interest rates may be cut in a no-deal scenario.

Sterling was trading 0.5 per cent lower versus the dollar at $1.278 at the London market close, and the British currency shed 0.6 per cent versus the euro at €1.135.

Gertjan Vlieghe, an external member of the central bank’s monetary policy committee, warned interest rates are more likely to be cut than hiked if Britain leaves the EU without a deal. The rate setter also said that Brexit has already cost the British economy at least £80 billion, or £800m a week, since the referendum.

The pound’s slump comes as Theresa May faced a series of votes last night in the Commons as the Brexit saga rolled on.

Connor Campbell, financial analyst at Spreadex, said: “Further Tory discord over Brexit – provoked by a poorly-received, debate-opening statement from Stephen Barclay which saw the MP suggest the government was willing to exit the EU without a deal on 29 March – caused the pound to drop.”

Meanwhile, the FTSE 100 ended the day up 6.17 points at 7,197.01.

In stocks, shares in Astrazeneca climbed despite the drugs giant revealing a 17 per cent fall in core operating profits to $5.7 bn (£4.4bn). Shares closed up 428p, or 12 per cent, at 6,149p.

On the FTSE 250, shares in The Restaurant Group tumbled 16.2p, or 11.1 per cent, to 129.8p after the Wagamama owner said chief executive Andy Mccue is to leave the company due to “extenuating personal circumstances”.