Pound Slumps as Confidence Falls, BoE Considers More Stimulus

The Great Britain pound plunged today as the minutes of the central bank’s policy meeting showed the policy makers considered boosting the asset purchasing program, while consumer confidence dropped further. The minutes of the Monetary Policy Committee meeting showed most members of the Committee thought the current monetary policy is appropriate. Yet the minutes also said:

Most of these members thought that it was increasingly probable that further asset purchases to loosen monetary conditions would become warranted at some point.

Nationwide Building Society reported the consumer confidence fell by 1 point to 48 in August, the lowest level since May. GBP/USD sank from 1.5735 to 1.5617 today as of 13:10 GMT and earlier reached 1.5590, the lowest price since January 2011. GBP/JPY slid from 120.25 to 119.22, following the drop to 119.07, the lowest rate since January 2009.