Bank of England voices concerns over sterling appreciation

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The Bank of England's Monetary Policy Committee (MPC) voted unanimously to keep rates on hold and maintain QE at £375bn in August but expressed fears over sterling's continued appreciation.

During the meeting held on 1 and 2 August all MPC members agreed the bank rate should be maintained at 0.5% and the Bank of England's QE programme should be unchanged.  However, for some members, the latter decision was "finely balanced" and some felt there was a case for more QE before ultimately voting against such a move. With euro weakness continuing over the summer, the MPC said a continued rise in the value of sterling may hit growth later this year. "In trade-weighted terms, sterling had risen by almost 1% since the Committee's July meeting and was 3.5% higher than at the st...

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