Pound sinks against euro and dollar as tax rises loom and growth slows

The Guardian•Wednesday, October 29, 2025 at 7:42:30 PM

The pound has fallen to its lowest level against the euro in over two and a half years, and it has also weakened against the dollar. This decline is attributed to the looming threat of higher taxes in the upcoming budget and concerns about slowing economic growth. As traders react to these developments, the prospect of a cut in interest rates to 3.75% has been brought forward, indicating a challenging economic landscape ahead. This situation matters because it reflects broader economic uncertainties that could impact consumers and businesses alike.

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