Pimco: UK may need more QE to stop sterling rise

Pimco's Andrew Balls believes the Bank of England could be forced into more quantitative easing to avoid an appreciation of sterling.

With the US recently taking action which could lead to a devaluation of the dollar, Pimco's head of European portfolio management says an appreciation of the pound, similar to recent moves for the euro and yen, would be unwelcome given the UK's current economic situation. "One factor that may force the Bank of England to engage in more quantitative easing is the danger of the British pound appreciating," Balls says. "Being a floating currency in a world of many more-or-less fixed currencies is not comfortable, particularly when the economy's fundamentals suggest that exchange rate dep...