UK Prime Minister Theresa May said the volatility of the Pound Sterling that had plunged it to a 31-year low should not be a cause for investor alarm.
She said: “Currencies of course go up and down. If you stand back and look at the fundamentals of our economy, which are strong, if you look at the other economic data that has been around in recent weeks, if you look indeed at the most recent forecasts now coming out for growth in our economy this year, all of that is more positive than people had expected it to be and predicted it to be.”
She added: “The IMF themselves have upgraded their forecast for growth in the UK economy for this year. They’ve said that the response to the Brexit vote was more orderly than people had expected it to be.
“Yes, the IMF and others have said that they are forecasting a slowdown in the economy next year. What the Government needs to do is to ensure that we are taking the right approach and that in terms of the process of Brexit, we are making that as smooth as possible.”
Today, the pound sterling had fallen to $1.277 reflecting concerns in the market and the outcome of Britain’s economic future.
Prospects for UK economic growth had fallen after the IMF downgraded the UK GDP forecast for 2017 by only 1.1%. However, it raised its outlook for the UK this year by 1.8% in growth.