Sterling fell to a two-week low versus the dollar this morning after the Bank of England's February meeting minutes showed a unanimous vote to begin unconventional monetary easing measures. The Monetary Policy Committee voted to seek government approval for a policy of quantitative easing, in addition to opting by an 8-1 vote to cut rates by 50 basis points. David Blanchflower voted for a 100 basis point cut, saying there was no time for delay.
The minutes also suggested further rate cuts were likely, saying that cuts would be needed to hit the central bank's inflation target. The pound dropped sharply to a two-week low of $1.4094 following the release of the minutes.
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