The decline of the pound against the euro and dollar has created a headache for the Bank of England as the inflationary impact on imports has acted as a counterweight to arguments for interest rate cuts to head off recession.

But even as the cost of dollar and euro-denominated oil, commodities and food stuffs have hit UK consumers and companies reliant on imports, the fall of sterling has boosted the revenue and profits of many British companies whose sales are mostly generated overseas.