Pound Falls To New Lows
I am actually somewhat surprised that a government official would say something like that. Usually they are hopelessly bullish. Perhaps Darling has seen the video with comedians John Bird and John Fortune that I recently posted where they argued that since the public is used to hearing lies from the government, he should make gloomy statements.
The decline in the pound will have both negative and positive effects for economic growth. On the one hand, it will likely reduce the large U.K. trade- and current account deficit. On the other hand, it will likely raise price inflation, making it more difficult for the Bank of England to reduce interest rates further.