Sterling posts biggest fall vs euro in 6 years

The pound lost as much as 2 per cent, a fall not seen since early 2009

Sterling fell sharply against the euro on Monday, on track for its biggest one-day loss against the single currency in over six years as the rout on global stock markets cooled expectations the Bank of England might raise interest rates any time soon.

The pound lost as much as 2 per cent, a fall not seen since early 2009, as the euro pushed through 74.00 pence for the first time since May.

The earliest money markets now expect the BoE to raise rates is the middle of next year, compared with the turn of the year, which was investors' base case as recently as earlier this month.

Britain's FTSE 100 stock market was down as much as 6 per cent on Monday, among its steepest declines on record.