The Pound Sterling lost ground versus other major currencies in London trading today following the release of a report issued by the Bank of England which opened the door for additional monetary easing. The quarterly Inflation Report revealed that the Bank of England is predicting a sharp pull back on inflation, below the set target. One Bank of England official suggested that additional easing of liquidity may become necessary. That statement sent short Sterling rate futures markedly higher and the Pound Sterling lower as forex markets scurried to set prices within the relaxed monetary policy.