Since the financial crisis struck in 2008 and the public finances unravelled, Britain has had just two weapons in its armoury to fend off recession: low interest rates and the weak pound. Low rates were supposed to ease the debt burden on households and pump cheap credit into businesses, while the weak pound delivered a competitive boost for exporters. Half the economic artillery, though, has started to fire blanks. The pound is not quite so weak any longer. In the past seven months, sterling has strengthened by 5pc against the euro. At €1.2761, it is back at levels not seen since mid-2008 – just before its collapse ... (full story)