Sterling falls on Bank of England minutes

The Pound has fallen this morning, as the Bank of England minutes revealed that all 9 committee members voted for interest rates to remain on hold, with 1 vote to increase Quantitative Easing (QE).

Although the result is exactly the same as August’s vote, there is a feeling that more QE will be implemented this year to stave off another recession. As widely reported, QE is very likely to weaken sterling.

This morning’s public borrowing figures also came in at a record August high of £13.2bn, UK consumer confidence has hit a 4-month low, and the UK growth forecast for this year has been slashed. In short, no good news at all for the Pound and perhaps a poor few months ahead for exchange rates.