Sterling falls through $1.50 ahead of Bank's QE decision

Sterling fell back this morning ahead of the Bank of England's Monetary Policy Committee (MPC) announcement as traders speculated whether the Bank will restart the printing presses to shore up the UK's economic recover.

In a decision economists have referred to as "knife edge" and "finely balanced", policymakers will have to make a call on whether to turn on the QE tap, or use alternative stimuli to prop up the floundering economy. Traders have reacted by selling sterling, with the pound falling through $1.50 against the dollar briefly to a new multi-year low of $1.4967. By 09:20am it was marginally above $1.50, trading at $1.5004. Bets against sterling are building following a tight decision by the MPC last month. The minutes of the last meeting showed Bank Governor Mervyn King voted in favour of...