Fund managers are concerned about the high level of borrowing needed to fund the UK government’s multi-billion pound tax cut package, and predict the Bank of England could intervene with a sharp interest rate hike in an attempt to stave off further drops in sterling.
The pound sank to a record low against the dollar on 26 September, slipping below $1.03 at one point during early trading and dragging the currency to its lowest-ever recorded level.
