Sterling moves higher following Bank of England MPC minutes

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Sterling has edged higher against the major currencies this morning, rising higher against all of the 16 most actively traded currencies, after the release of the minutes from the Bank of England's last policy meeting. The Monetary Policy Committee voted 6-3 in favour of keeping interest rates on hold, with Andrew Sentance voting for an immediate 0.5% increase.

One member, Adam Posen, maintained his recommendation for further quantitative easing, saying that the rising global demand could outweigh pressure on consumer price growth.
The minutes also said that the economic outlook remains highly uncertain and the risks are skewed to the downside. The majority of the MPC want to wait for the first quarter growth figures in early April before deciding whether to begin tightening monetary policy.

Nevertheless, the shift in support for an interest rate increase means that there is a good chance of an interest rate rise by May and that should continue to assist Sterling. The only disappointing factor for Sterling is that no other members stepped forward and voted for an immediate rate increase this month.