INTEREST rates face being cut, the Bank of England governor has warned, as Brexit continues to have a biting impact on our pockets.
Mark Carney said "some monetary policy easing will likely be required over the summer" a clear indicator interest rate cuts are possible.
He added that the uncertainty caused by last week's Brexit vote will "weigh on our economic prospects for some time".
Last week the pound plunged to a 31-year low against the dollar as investor confidence was shattered by Leave winning the EU referendum by a 52-48 margin.
Prices of holidays to the Med also face a hike after Brexit, with cut-price getaways to the Costas and Magaluf for Brits possibly on borrowed time.
Mr Carney said the result could harm growth of the UK economy for "some time".
He also hinted that the Bank could pump extra cash into the economy in the short term, under its quantitative easing programme.
The Bank of England's Financial Policy Committee could take further action when it meets next Tuesday.
Britain's decision to quit the EU has had economic ramifications across the world as markets were shaken by the tumultuos decision.
It has also blown the Westminster political landscape apart, with PM David Cameron quitting, sparking a bloody race to the the next Tory leader.
Today Michael Gove, Theresa May, Andrea Leadsom, Liam Fox and Stephen Crabb were unveiled as the five MPs vying for the Conservatives' top job.
Mr Gove has been accused of stabbing Leave campaign ally Boris Johnson in the back, after the latter dramatically withdrew from the race today.
Labour leader Jeremy Corbyn has faced sustained calls to quit his position, after the vast majority of his shadow cabinet resigned in protest.
So far he is adamant that he will continue in the post after being elected by members with a sizeable majority last September.
His task got harder today after he likened Israel to ISIS in a speech about anti-Semitism within the Labour Party.
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