August 17, 2011 / 8:44 AM / 6 years ago

Sterling falls, BoE shows no votes for rate rise

1 Min Read

LONDON, Aug 17 (Reuters) - Sterling hit a session low against the dollar and the euro on Wednesday after Bank of England minutes showed two policymakers had backed down from their argument to raise interest rates, while figures showed a big jump in UK jobless claims.

Bank of England policymakers Spencer Dale and Martin Weale ditched their calls for higher rates this month, and others considered a new round of stimulus, minutes to their August meeting showed on Wednesday.

The BoE's Monetary Policy Committee voted 9-0 to keep rates at a record low 0.5 percent.

In addition, data showed the number of Britons claiming jobless benefits saw its biggest jump in over 2 years in July and employment growth slowed.

Sterling fell to a session low of $1.6348, down more than half a percent on the day, from around $1.6415 before the minutes and the data were announced.

The euro jumped as high as 87.97 pence, hitting the day's high, from 87.61 pence. (Reporting by London Forex Team)

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