Pound Falls To Lowest Since 2001 Vs Dollar

The pound is down again, hitting its lowest levels against the US dollar since 2001 after two days of bombardment for British banks.

The minutes from the BOE's Jan 8 meeting are due for release at 9.30 am today, they are expected to reinforce the view that UK interest rates will continue to decline.

With interest rates now at 1.5% there is a little room left for further reductions before all the bullets have been fired. Another half point cut is on the cards at the beginning of February methinks.

After that, we are down to "alternative tactics" to kick-start the economy. Mervyn King said that the MPC may need to prepare for "a range of unconventional measures" taking the form of BOE purchases of financial assets.

Unemployment for December are also due out later this morning. They are expected to show the highest number of single month job losses since March 1991.

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