Figures published yesterday by the Office for National Statistics showed annual UK consumer prices index inflation fell more steeply than expected, from 1.9 per cent in June to 1.6 per cent in July. This took it further below the target set for the Bank by the Treasury. A sharp fall in clothing prices played a part.
Sterling was trading at $1.6619 at 5pm, having hit an intra-day low of $1.6609. It closed at $1.6720 on Monday.