shares rally after the Bank of England warns that markets are wrong in expecting
interest rates to rise soon.
The pound fell against the dollar and euro after the Bank of England unveiled
a plan to relieve the crisis in the money market.
Sterling fell and gilts rallied on Wednesday after the Bank of England's UK inflation
report was seen as more dovish than expected, offsetting a relief .
Yesterday an increase in Britain's tax levy on banks hurt the pound, and
exchange rates against the Euro and US Dollar fell.
The pound has fallen against other currencies after the Bank of England
quashed growing City speculation of an early increase in interest rates to rein in the economy.
The pound has weakened massively yesterday and again this morning against the
USD, AUD, NZD and the Euro on renewed concern the financial crisis in Europe.
The euro slid against most global currencies on debt issues in Greece and Portugal. The UK pound weakened against the US dollar and the Japanese yen.