Pound slides on poor UK outlook

The Bank of England doesn't rule out further rate cuts

The British pound has dropped to a record low against the euro and to a six-year low in dollar terms following a report by the Bank of England.

Sterling fell to $1.4897, as against $1.5426 at the previous close, while it now takes 83.52 pence to buy a euro.

The pound is below $1.50 for the first time since July 2002.

The Bank of England said the economic landscape had worsened dramatically, adding that it was prepared to cut interest rates again if necessary.

The announcement put serious pressure on the pound.

"Clearly, monetary policy remains in focus," said James Hughes, an analyst at CMC Markets.

Last week, the Bank of England delivered a shock one-and-a-half percentage point cut in UK interest rates to 3%, the lowest level since 1955.

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