Here are the business stories making the headlines this morning.

Pound hits highest level since March 2022 after Bank holds rates

The pound hit a two-year high against the dollar, breaking the $1.33 level, after the Bank of England held interest rates steady on Thursday and promised only “gradual” monetary loosening in the coming months.

Sterling rose by as much as 0.7% against the dollar, reaching the $1.331 mark — its highest level since March 2022 — after borrowing costs were left unchanged at 5% and the US carried out a bumper half a percentage point cut to interest rates on Wednesday.

High interest rates support the value of a currency, as traders buy lower-rate currencies to invest in higher-rate environments.

Sterling also gained 0.3% against the euro to hit €1.19, its highest level since July.

Horizon scandal: Sir Alan Bates blames 'flimflam artists' for delaying compensation payouts

Post Office campaigner Sir Alan Bates has blamed government "flimflam artists" for dragging out financial redress for victims.

In a newsletter, seen by Sky News, he criticises the GLO (Group Litigation Order) scheme for being a "gravy train" for government lawyers.

He adds it is "seemingly to ensure maximum income for the lawyers and minimal settlement for the victims".

He continues: "I have come to the conclusion that the department is run by government-employed flimflam artists, whose only role is to draw out the GLO Scheme, and probably the other schemes, and spin the narrative then bury it in bureaucracy."

Fear of tax rises chills consumer confidence

Consumer confidence has suffered a steep decline after the government cut winter fuel allowancesand warned of “painful” tax increases.

The GfK consumer confidence index, which has been running since the 1970s, has fallen to minus 20 this month as consumers reported feeling less positive about their personal finances and the health of the economy generally.

The index had shown a reading of minus 13 in August, and GfK said that the “big fall” for September reflected nervousness about the autumn budget.

Neil Bellamy, consumer insights director at GfK, said the decline in consumer confidence was “not encouraging news for the UK’s new government”. The index showed the outlook for personal finances fell from minus 7 to minus 9, while respondents’ views of the general economic climate deteriorated from minus 35 to minus 37.

Nike boss steps down as company veteran returns

The boss of Nike will step down next month, making way for a company veteran to take his place as the leader of the world's biggest sportswear company amid tough competition in the retail sector.

In a statement, external, Nike said John Donahoe will retire on 13 October, staying on in an advisory role until early next year to "ensure a smooth transition".

Demand for the company's trainers has been faltering in international markets like China and the company's stock price had slumped.

Shares rose more than 9% in after-hours trading, however, following the announcement that Elliott Hill would return to the firm.

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