FXstreet.com (Barcelona) - The Sterling is falling quickly against the Dollar on the back of the BoE quarterly inflation report released today and the Mervin King comments. The GBP/USD has fallen around 200 pips after reaching 1.6800 level as daily high ahead the report to test 1.6600 level.
BoE expects a slow recovery in the coming months and no return to pre-crisis growth in a considerable time. Governor King has affirmed that the prospect of absolute disaster has been greatly diminished.
Mervin King also comments that policy will hold unchanged considerable time and investors who are assuming the end of the quantitative ease program are wrong.