Minutes indicating fissures among policy makers with the Bank of England pulled down the value of the English pound on Wednesday, Bloomberg reports.
The monetary unit sank to its lowest value in 10 weeks after minutes from this month's Bank of England policy makers meeting indicated two policy makers sought a larger asset purchase package than the amount to which the body agreed. The pound fell against all but one of its 16 major rivals as the two policy makers pursued quantitative easing to equal $117.8 billion rather than the $78.4 billion package that was implemented. One economist said these minutes reveal the door remains open for additional easing, perhaps within months.
"There is clearly still a dovish bias there. That leaves us a bit more comfortable with our forecast for another 50 billion pounds QE in the second half of this year," economist Ross Walker with the Royal Bank of Scotland told Reuters.
During the final quarter of last year, the U.K. economy shrank, according to a report to be distributed this week. That spurred demand for assets considered more safe.
But additional policy makers with the Bank of England called on the central bank should not pursue any monetary easing, according to Reuters.
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