//
According to Neil Mellor, a London-based currency strategist at BNY Mellon, there has not been anything to come out and counteract this possibility, although he does not expect the Bank of England governor Mervyn King to raise the cash level from its record low of 0.5 per cent later this week, Bloomberg reports.
Mr Mellor added: "Some MPC [Monetary Policy Committee] members are clearly becoming concerned about the impact of doing nothing about inflation."
This comes after the pound dropped by 0.1 per cent late in the morning (February 7th), despite previously surging by 0.5 per cent.
Following the rise, Valentin Marinov, currency strategist at Citi, said concerns at the MPC about inflation risks may just spur sterling on to further gains, Reuters reports.
Last Friday, the pound decreased by 0.4 per cent against its US counterpart.
Posted by Greg Secker
