Following an increase in quantitative easing from the Bank of England, the pound has dropped to 1.570 against the dollar, down from 1.587 yesterday.
The pound weakened to a year-to-date low against the Euro of 0.843.
The BOE voted 7-2 in favour of a £50 billion increase in easing. Two members, Miles and Posen, voted for a larger £75 billion increase.
The BOE voted unanimously not to change rates. They also said in a statement that the ECB’s LTRO had reduced risk in Europe.
BOE Governor Mervyn King said they expect a “zig-zag” pattern of quarterly growth, up 0.2 per cent from Q4 to Q1 and flat from Q1 to Q2, according to MNI.
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