Yesterday's decision by the Bank of England's monetary policy committee to freeze UK interest rates has pushed the pound down against the majors.

London trading saw the pound fall to 2.0185, erasing gains which had pushed it to 2.0263 earlier in the day.

By early Friday, the euro was trading higher against the pound, rising to 0.6779 from yesterday's close of 0.6766.

The Bank of England decided to freeze interest rates after noting "signs of a slowing in consumer spending".

That leaves the UK base rate at 5.75 per cent and analysts are predicting that it will stay there until the effects of the US subprime mortgage fallout have been fully assessed.

And a survey of economists undertaken by Bloomberg and Reuters concluded that problems in inter-bank lending would continue to keep the British interest rate in stasis.