From the Archives, July 28, 1973 | UK bank rate at new high as pound dips

London, July 27: The Bank of England to-day pushed up its minimum lending rate from 9 to 11.5 per cent, the highest in British history, in a move aimed at restoring the position of sterling on the world’s money markets. The pound to-day continued the sudden downward plunge it began yesterday against the U.S. dollar. Trading was described to-day as “rather nervous” after yesterday’s assault on the pound, which dipped below $2.50 in London for the first time since May 7 and touched new lows against most other European currencies. In initial London trading to-day, it took $2.4725 to buy a pound, as against yesterday’s closing of $2.4845. The pound is in very serious trouble in European exchange markets and its acutely embarrassing the British government. This is regarded as a disastrous new money crisis.