Bank of England official: 'Leave pound alone'

UK - A senior Bank of England official has warned against artificially reducing the value of the pound.

The Bank's director for Europe, John Townend, made his comments soon after Ernst & Young's economic forecasting group, the Item Club, called on the Bank to reduce sterling's strength in order to help the economy.

In a speech in Kuala Lumpur, Malaysia, Mr Townend acknowledged that "the sterling exchange rate is clearly overvalued, at least against the euro".

But he went on to insist that a f