Pound Drops As King Says Economy Facing Difficult, Painful Adjustment

The Pound fell nearly 100 points after BoE Governor stated that the U.K. economy faces a difficult, painful adjustment and that the “balance of risks are on the downside”.

The central bank leader would go on to say that although near term inflation risks remain elevated, that a sharp decline in growth will reduce the medium term risks of price stability and that expectations are that consumer prices will return to their 2% target within two years.

The pound hit $1.8757 shortly after the comments.