HiFX: Foreign Exchange Specialists

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August 20, 2008

The Bank of England minutes from the August 6th-7th meeting revealed a repeat 7-1-1 split in voting.  Blanchflower once again voted for a 25bp rate cut while Besley pushed for a 25bpoint hike.  The minutes adopted an overall dovish tone, while remaining cautious that it is still too early to be certain that the recent easing of upside inflationary pressures will continue.  The Pound declined nearly 0.5% against the U.S. dollar as the market has now fully priced in a 25 basis point cut by year-end.