The minutes of this month’s Monetary Policy Committee meeting showed the pound dominated its debate over rates. The comments caught the market by surprise and sterling fell against the dollar and the euro.

It would have been the UK’s first intervention on the currency markets since 1992 when sterling crashed out of the exchange rate mechanism after the government spent pounds 10bn trying to prop it up.

The ONS said the trade position was hit by a record 7.5 per cent jump in imports and a strong increase in imports from South-east Asia. Sterling kept export growth at 2.5 per cent with the biggest impact on non-EU trade.

“There were risks to the inflation outlook from continued buoyant domestic demand and a tight labour market,” the minutes said. “On the other hand, inflation could remain below target for a protracted period if sterling’s strength persisted, as the experience of the last few years suggested it clearly might.”

On Mr. Long’s appointment, Talbert said, “Bob Long’s extensive experience in key positions, including those in operations, marketing and as Chief Financial Officer, will serve the Company well in his new role as President and later as Chief Operating Officer following Dennis’ retirement. These leadership changes will allow me to focus more on helping advance the business strategy of Transocean Sedco Forex.”

J. Michael Talbert, who will continue to serve as Chief Executive Officer of Transocean Sedco Forex Inc., stated, “Dennis Heagney has had a distinguished career with Transocean Sedco Forex and has made many valuable contributions in support of this organization and the offshore drilling industry. His operational leadership and dedication through three mergers and acquisitions were important factors in insuring the successful integration of the former Sonat Offshore Drilling, Transocean ASA, Sedco Forex and R&B Falcon. Transocean Sedco Forex will benefit from his guidance and knowledge for years to come.”

Meanwhile, Japan told Britain the strong pound was the “biggest problem” facing Japanese companies. The Japanese ambassador told the Minister for Trade, Richard Caborn, firms in the UK had “trouble” coping with the pound.

Roger Lyons, the general secretary of the MSF union, said he would urge the Government to intervene when he met Stephen Byers, the Secretary of State for Trade and Industry, today. “It is patently clear that the MPC with its present remit is unable to handle the sterling issue,” he said.

posted by Administrator at 2:53 am & filed under Euros |