Pound slides as BoE policymakers disagree over QE

In forex trading this morning (November 21st) the pound has lost ground against the euro and dollar as Bank of England (BoE) policymakers disagree over the impact their asset purchasing programme is having on the economy.

Minutes from the BoE's Monetary Policy Committee (MPC) meeting on November 7th and 8th have revealed that not all members are reading from the same hymn sheet when it comes to whether quantitative easing (QE) is boosting growth by encouraging borrowing among first-time buyers and businesses.

Furthermore, there are arguments for more monetary easing, even though the BoE decided not to pump more finances into the system at its last conference.

The minutes stated: "A case could be made for a further easing in monetary conditions. Different members placed different weights on those arguments."

At 10:55 GMT, the pound dropped by 0.1 per cent versus the dollar to £1 buying $1.591, while it gained 0.1 per cent against the euro to reach €1.244.

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