![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/elon-musk-to-cut-half-of-twitter-jobs-and-end-working-from-home/&media=https://uknews.evprotec.com/wp-content/uploads/2022/11/TELEMMGLPICT000314722325_trans_NvBQzQNjv4BqUdpOC9bYgtt5lYSWGPsSUndK9jbskw4gK8A2cMQhPWg.jpeg&description=9:15AM ECB President Christine Lagarde has warned that a 'mild recession' is possible but that it wouldn't be sufficient in itself to stem soaring prices. Speaking a week after the ECB's second straight 75 basis-point hike in interest rates, and as fears mount that the energy crisis will drag down output in the bloc, Ms Lagarde said: 'We don't believe that that recession will be able to tame inflation.' While a contraction isn't her 'baseline' scenario, Ms Lagarde's Latvian colleague, Martins Kazaks, said he expects one in the coming months. Executive Board member Fabio Panetta, meanwhile, warned about the economic risks of rapid rate rises. 9:01AM Sterling has dropped sharply against the dollar ahead of this afternoon's interest rate decision from the Bank of England. The pound slumped more than 1pc to trade at $1.255 as investors remain on edge. Markets are expecting the Bank to raise rates by 75 basis points. That would be the biggest increase for 33 years. But any surprises – or major dissent from members of the MPC – would add to pressure on the pound. 8:42AM The FTSE 100 is firmly in the red this morning after the Federal Reserve doused hopes for a pause in its aggressive interest rate rises and markets look ahead to the Bank of England. The blue-chip index fell as much as 0.9pc, extending yesterday's losses, before easing back to a decline of 0.7pc. The Fed raised interest rates by 75 basis points last night, with chair Jay Powell souring the mood by saying it was "very premature" to think about a pause. The BoE is expected to follow suit with what would be its biggest rate hike in 33 years. BT led losses on the FTSE, tumbling more than 6pc after it increased its cost saving target. Sainsbury's rose 3.3pc as it retained its guidance despite a fall in profits. 8:28AM Rolls-Royce has said it expects to meet forecasts for the full year thanks to a recovery in long-haul flying and a strong defence business. The company's commercial engines, which power large ai){kind=link}
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Sterling has dropped to its lowest level since Rishi Sunak became prime minister ahead of this afternoon’s expected interest rate rise by the Bank of England.
Markets are expecting the Bank to raise rates by 75 basis points, in what would be the biggest increase for 33 years.
But a surprise 50 basis point move – or major dissent from members of the MPC – would add to pressure on the currency.
The pound slumped more than 1.2pc to trade as low as $1.245 as investors remain on edge.