Aussie dollar tumbles

The Australian dollar tumbled against sterling yesterday, as fears about recession kept investor risk aversion high. Stock markets fell, largely dragged down by the banking sector over the EU's potential exposure to Eastern Europe’s shaky banking sector. Data yesterday revealed a smaller than expected fall in British inflation, but this is unlikely to impact on the BoE’s monetary easing. The BoE releases the minutes from its last meeting later today, although it is unlikely to have the same impact as previous releases. This is due to last week’s inflation report and comments from BoE Governor Mervyn King that further policy easing was likely.