Collapse of the pound

The Sterling pound is collapsing against the euro, having reached the all-time low of £1=1.1 euro, and maybe soon will hit parity. That's a 22% drop in one year. It is a result of the sharp fall in interest rates decided by the Bank of England last week, but also shows a lack of confidence in Brown's economic package stimulus to limit the impact of the recession, especially the large resort to borrowing. The government has announced that it does not intend to support the pound.