Calls for additional UK stimulus see Sterling slide towards a second weekly decline against the US Dollar.
The Pound Sterling Exchange Rate was in the region of 1.1547 against the Euro as of 09:59 am
Earlier this week the Bank of England published minutes from its latest policy meeting, minutes which revealed a growing divide between members of the Monetary Policy Committee regarding upping fiscal stimulus.
Three of the nine members of the MPC now believe that the BoE must alter policy to drive growth.
One of those three, David Miles, has now spoken out about his stance.
During a speech made in Bath yesterday Miles asserted that ‘a good case can be made for more expansion. If there are monetary policy tools that are more reliably effective in boosting demand, they should be used.’
Miles, along with fellow members of the MPC Paul Fisher and Mervyn King (who also happens to be governor of the BoE) voted for additional stimulus when the committee last met. There are also increasing calls for new measures to be considered in order to prop up the UK’s flagging economy.
With next week’s fourth quarter GDP report widely expected to confirm that the UK economy contracted at the close of last year (taking it a step closer to an unprecedented triple-dip recession) there are some that would argue that the current measures just aren’t enough.
After easing away from its recent 2 ½ year low against the US Dollar yesterday Sterling was little changed this morning. In the absence of significant news for either the UK or the US, movement in this paring will be limited, but could occur in response to global developments.
Sterling lost significant ground against the Australian Dollar during Australasian trading after the governor of the Reserve Bank asserted that additional rates cuts would not be occurring in the near future. Following Glenn Stevens’ announcement the Pound lost 0.7 cents against its Aussie rival.
Meanwhile, a stronger than expected German Ifo figure caused the Euro to briefly gain on the Pound this morning, although the advance was later wiped out after the EU slashed its growth forecast for the Eurozone returning the pairing to its previous levels.
Current GBP Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading at 1.1547
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trading at 1.5273
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trading at 1.4816
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trading at 1.8246
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trading at 1.5560
The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate is currently trading at 142.5300
These exchange rates were correct as of 09:59 am
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