Clearly we have unfinished business for monetary policy, fiscal policy and getting the banking system working, Bank of England monetary policy committee member Tim Besley says.

The challenge for the MPC is to keep the CPI target credible when the economy is weak and commodity prices are falling. The weak pound will likely mitigate some of the deflationary risks, he said.

The pound has been outperforming the euro in a big way today. Not for any fundamental reason mind you. It has purely been technical, resulting from it’s position as least-loved of the majors for many months. Cable trades at 1.4248. GBP/USD