Pound hits two-year low after UK economy contracts in second quarter – business live


GDP shrank by 0.2% in the second quarter amid manufacturing slump

The sterling sell-off on currency markets has steepened: the pound is now below $1.21 against the US dollar and below €1.08 against the euro.

That represents a daily decline of 0.5% against the euro, and 0.3% against the dollar: lows of €1.0784 and $1.2078 respectively.

Thank you to Carlito1996 in the comments for dredging this link up from way back in the mists of time – 21 June 2016, just before the Brexit referendum: Boris Johnson promising to apologise if a Brexit vote led to a recession.

Two major caveats: the original question was slightly imprecise, so the new prime minister may have been referring to forecasts of an immediate recession following a vote in favour of leaving. And the UK has not reached recession, and many economists do not expect it to.

Of course I will […] I’m not certain what my political career holds anyway. This is far more important than any individual political career.

Related: Boris Johnson will make TV apology if Brexit triggers recession

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