The pound sterling lost ground this week that the Bank of England has a dark assessment of the UK economy and that he is prepared to take measures of monetary policy unconventional as the confrontation with the current economic slowdown.

In its quarterly inflation report on Wednesday, the Bank has stepped up its estimates for growth and inflation forecasts in the United Kingdom would be below the threshold of the 2 percent target if interest rates remain at current levels.

The removal of these expectations that the Bank has been a further reduction in interest rates following the reduction by 50 basis points to 1 percent in the past week.

But it was the allegation that the bank is in a policy of quantitative monetary easing of interest rates, once fell to zero, which undermined sterling.

Mervyn King, Governor of the Bank, said the central bank was “undoubtedly” to buy gilts and money for the necessary increase.

Neil Mellor, Bank of New York Mellon, said the announcement that the Bank may participate in the press against the proposed book.

“Sterling is surely in this environment,” he said.

The new strain has been a meeting with the British pound, if it as high as $ 1.4984 against the dollar on Monday, the British financial system, that stocks are in the most recent bottom. Sterling’s assets have remained closely linked to the development of financial assets, as the British economy of exposure to this field.

The book sold, the shares fell on disappointment about the plans for the rescue of American banks has revealed, Tim Geithner, the U.S. Treasury on Tuesday.

The reports that the United States, the plans for the subsidization of mortgages and activities lifted, the book by Friday.

The analysts of the book also has support on the fear that the message this weekend after the G7 meeting of finance ministers and central bankers could make a specific reference to the concerns about the weakness of the pound sterling.

During the week, the British pound fell by 2.6 percent to $ 1.4388 against the dollar lost 1.9 percent to 0.8937 against the pound and the euro fell from 2.6 cent to Y132 against the yen.

The river and the decrease in the risk appetite of investors continues to dominate the trade in currencies. Investors, on the fluctuations in global equity markets, economic data, with little effect on the feeling. The dollar has shown that the rise in risk aversion increased oasis request of the currency.

During the week, the dollar rose 0.8 percent to $ 1.2862 against the euro, an increase of 0.2 percent SFr1.1614 against the Swiss franc and gained 2.2 percent to $ 0.6582 against the Australian dollar .

The dollar changed little Y91.77 against the yen the week, the Japanese currency has also workflow oasis.

The yen rose by 0.8 per cent to Y118.05 against the euro in the week, has 2.1 percent to Y60.52 and the Australian dollar rose 1 1 per cent to Y48.12 against the New Zealand dollar.

The Swedish krona has fallen sharply after the central bank lowers interest rates more than expected according to its orientation.

The bank reduced the rate of 100bp at a low level of 1 percent, and said it could reduce more. The Swedish krona fell by 3.8 percent to SKr8.3873 against the dollar during the week and lost 3 percent to SKr10.7840 against the euro.