The British pound extended its gains on the combination of broad dollar weakness

The British pound extended its gains on the combination of broad dollar weakness and inflation fears. The Bank of England released the minutes from their monetary policy meeting earlier this month and according to the report, fears of inflation will keep the central bank on hold for the foreseeable future. Eight out of the nine members voted in favor of the decision to keep interest rates unchanged with the dissenter favoring a rate cut. With a strict mandate to focus on inflation and two members already voting to keep rates unchanged at the meeting prior, the near unanimous voting record was not all that surprising. Although the need to focus on inflation and the problems with price pressures is a sentiment shared by all of the MPC members, the internal outlook for growth varied.