Pound 'will fall to parity with euro'

Telegraph
"Sterling weakened yesterday to close at just over 90p to the euro for the first time in four months, amid renewed concern over the state of the British banking system. .....
The Bank has also indicated that it is open to loosening monetary policy further by extending its quantitative easing programme (QE) beyond the current £175bn ceiling, should conditions deem it necessary."The Bank will have little choice, other than to maintain an extremely loose monetary policy over the coming years to compensate for the sharp tightening of fiscal policy," the BNP Paribas note said, referring to the Government's need to bring the public finances under control."