The UK’s recession fears were fuelled today after figures showed a bigger-than-expected contraction in GDP in August.
The 0.3% decline reported by the Office for National Statistics comes as traders continue to focus on developments in the bond market, with Bank of England governor Andrew Bailey warning that emergency support would end on Friday.
Speaking in Washington last night, Bailey said there could be no further extension beyond the end of the week: “My message to the (pension) funds involved – you’ve got three days left now. You have got to get this done.”
Sterling stood at just below $1.10 this morning, having fallen by more than a cent on the back of his remarks.
