The Carney era: where to invest when sterling falls

Sterling experienced its sharpest quarterly fall since 2009 in the first three months of this year, dropping more than 4% against a trade-weighted basket of other currencies. On one hand, that is good news. UK economic growth needs all the help it can get at the moment. With interest rates at historic lows and any further quantitative easing (QE) likely to achieve diminishing returns, currency valuation is one of the few policy levers left to pull. The signals from the Bank of England suggest it takes the view that weaker sterling will encourage growth by boosting exports, helping to ...