Sterling has fallen almost half a per cent against the Euro, following the release of minutes from the Bank of England's monetary policy committee (MPC).

Analysts had expected that several MPC members had voted for a rate rise, but the documents revealed that the committee was almost unanimous in its decision to maintain rates in June, with only one dissenting voice out of eight.

Reuters reported that interest rate futures had been banking on a rise in the base rate during August - but MPC members remained concerned that such a move could raise inflation.

The news encouraged currency traders to weaken the pound against the euro, seeing the currency valued at 68.60 pence per euro by 14:15- the lowest the currency has been valued since June 12th.

Adarsh Sinha, Barclays Capital currency strategist, told the news

agency: "Short sterling had a relief rally and euro/sterling traded higher as some market participants were looking for a more hawkish set of minutes."

MPC predicted that inflation could fall if the rise in sterling and the declines in stock markets were maintained.