Bank of England send mixed signals

28 July, 2011


Today’s Bank of England minutes (from their interest-rate setting meeting earlier in the month) showed a surprise split on quantitative easing – with 2 members (including Mervyn King) voting for even more extra money for the economy than the £50bn which was injected.

As the extra funds have tended to devalue the Pound, the shock news send sterling tumbling over half a cent against the Euro and Dollar this morning, with the Dollar rate recovering slightly this afternoon.

Tomorrow’s UK retail sales will now be interesting – can we get some good news from the high street, or will further gloom add to the weight on sterling exchange rates?