Sterling slips as BoE's QE debate takes another twist
* Sterling slips vs dlr, euro on BoE Posen's QE comments
* Cable backs off from 3-week high, dips under $1.63 * BoE minutes this week to shed more light on QE thinking
By Jamie McGeever
LONDON, Oct 19 (Reuters) - Sterling slipped against the euro and dollar on Monday after a Bank of England policymaker said the central bank should continue its programme of quantitative easing because the financial system has yet to fully recover.
Adam Posen's comments to the UK's Sunday Times eclipsed sterling-friendly house price data from property website Rightmove, which showed asking prices for homes in England and Wales up on an annual basis for the first in more than a year in October.
Market participants said Posen's relatively dovish remarks contrasted with those of fellow MPC voting member Paul Fisher last week, which were interpreted as a signal the Bank might be considering drawing its QE programme to a close soon.
"I think they're divided. There are contrary opinions," said Rob Minikin, currency strategist at Standard Chartered in London, adding that the November MPC meeting and quarterly Inflation Report will be critical for sterling.
He said Posen's comments provided the market with a good excuse to put the brakes on a rebound for sterling that took hold late last week. Continued...
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