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

<p>Prospect of a tough budget is thought to have brought forward the likely date for a cut in interest rates to 3.75%</p><p>The threat of higher taxes in next month’s budget and concerns about slowing economic growth pushed the pound to its lowest level against the euro in more than two and a half years on Wednesday.</p><p>Sterling also slumped against the dollar as traders digested news that Rachel Reeves <a href="https://www.theguardian.com/business/2025/oct/28/rachel-reeves-uk-productivity-obr-tax-rises-budget">will need to fill a larger hole in the public finances</a> when she puts together her budget plan, after a bigger-than-expected downgrade to the UK’s productivity outlook.</p> <a href="https://www.theguardian.com/business/2025/oct/29/pound-sinks-dollar-euro-budget-tax-rises-loom">Continue reading...</a>