The Pound has fallen this morning …

The Pound has fallen this morning following the release of minutes from the Bank of England Monetary Policy Committee (MPC) meeting held on the 8th and 9th February. At that meeting the Bank decided to hold interest rates at the historic low of 0.50% and extend Quantitative Easing (QE) by an additional £50bn, taking the total Asset Purchase Programme to £325bn.

The minutes showed that the MPC was split over the size of the expansion of its Quantitative Easing Asset Purchase Programme. Of the nine member strong MPC, seven members voted to expand QE by an additional £50bn whilst two members voted for a larger expansion of £75bn.

As discussed in previous blogs, the threat of further QE continues to undermine the value of the Pound.

As I am writing this GBPEUR has slipped back below interbank 1.19, to a low of 1.1859 before recovering slightly towards 1.1870. Against the US Dollar the Pound has slipped back below 1.58 and currently trades at 1.5710.

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10:00 22/02/12