Interest Rate Indecision Weakens Sterling

Published / Last Updated on 21/12/2010

Interest Rate Indecision Weakens Sterling

The pound fell against the dollar to a three-month low of $1.5426 ahead of the final meeting of the year of the Bank of England’s Monetary Policy Committee (MPC)

Several members of the MPC, including Governor Mervyn King, voted to keep the Bank's base rate at 0.5% and maintain quantitative easing (QE) at £200bn. However Adam Posen wanted to increase QE to a total of £250bn, While Andrew Sentence, requested a rise of 0.25 per cent for the base rate.

Useful links:

Back to News Summary

VAT Rises to 20 per cent

Record Government Debt