UK pound sterling takes another hammering against major currencies

Did you know that UK sterling has lost more than one third of its value against major world currencies in the past 40 years and the Great British pound is now set to take another hammering lower if Carney, the Bank of England’s new superman get’s his own way in 2013.

Latest UK Sterling Exchange Rates

As of 08:44 GMT this morning, one UK pound sterling bought 1.14930 euro and against the US dollar a pound exchanged $1.50890.

UK Inflation Numbers

The Bank of England Governor Mark Carney has been saved the embarrassment of explaining to Chancellor George Osborne how rising inflation rose to just 2.9 percent, instead of exceeding the 3.0 percent level as originally expected. Rising fuel and clothing costs in the UK led to a spike in consumer price inflation from 2.7 percent in May to 2.9 percent in June, according to the latest figures published today from the Office of National Statistics.

Carney, BOE and QE

However it remains to be seen the stance Carney will have on further QE for the British economy for the second half of 2013. More QE is going to further erode the value of UK sterling against currencies including the US dollar and euro, which will in turn push up inflation in Britain.

The previous governor Sir Mervyn King found himself outvoted six to three in the last five months of the reign against extending QE by £25bn to £400bn.

Carney has already revealed his dovishness when he hinted at a forward guidance policy on interest rates earlier this month – a strategy he has used before when governor of the Bank of Canada.

But while he has hinted at favouring more QE to help the UK reach “escape velocity”, the recent slew of good data coming from the UK may have prevented Carney from voting in this direction – for now at least.

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UK pound sterling takes another hammering against major currencies