Pound Falls On BOE Minutes

Minutes from the Bank of England's last MPC meeting released at 9.30am this morning reveal that the lumbering economy might make it necessary to increase QE further.

The committee voted 8-1 to keep interest rates on hold, with Andrew Sentance wanting a 0.25% increase to 0.75%. He's concerned that inflation is consistently running too high.

The rest of the MPC however seem to quite fancy getting the old Thomas Caxton out and rattling off a few more twenties.

It they go down that route, possibly with the US too - in what one newswire is wittily referring to as "jumping on board the good ship QE2" - that's going to make inflation worse not better.

The US are better placed to withstand a bit of inflation than we are, potentially putting sterling at the head of the firing line to become the latest currency market whipping boy.