Sterling contained versus dollar as interest rate rises start to bite

The British pound held steady on Friday as data showed that previous interest rate rises are beginning to weigh on housing and manufacturing, but official figures showed the economy fared better than previously thought through the COVID-19 pandemic.

British factories suffered their weakest month since early in the COVID-19 pandemic, the S&P Global/CIPS UK manufacturing Purchasing Managers’ Index showed on Friday, with orders shrinking dramatically due to the rise in interest rates. “The index was dragged down by a significant decline in production, as the impact of rising interest rates on customer demand continued to grow,” said Martin Beck, chief economic advisor to the EY Item Club.

Source: Devdiscourse