"It also accentuates the chance that an interest-rate cut will come at the next Bank of England meeting in February, " says Roger Bootle, managing director of the consultancy, Capital Economics.
The European Central Bank and the Bank of England are both meeting on Thursday and the U.S. Federal Reserve will release its latest Beige Book on Wednesday.
Minutes of the last policy meeting of the Bank of England released Wednesday showed outgoing Gov. Mervyn King and two other members of the Monetary Policy Committee supported another cash infusion to revive Britain's ailing economy.
Mr Agius said he was summoned to a meeting with Bank of England governor Mervyn King on the evening of Monday 2 July, the day he resigned, where he was told in no uncertain terms that the regulators had lost confidence in Mr Diamond.
The Bank of England left its monetary policy unchanged at its meeting Thursday, as expected.
Opinion is divided among analysts as to whether the Bank of England is likely to push ahead in its next monetary policy meeting with more monetary stimulus - likely to come in the form of further purchases of government debt with newly created money, or Quantitative Easing.
My government believe the historic decision to give the Bank of England the power to set interest rates has been crucial to the meeting of its inflation target and credibility in the system.
The consumer-price index rose 2.8% on the year in May, compared with expectations for it to remain at 3%, fueling hopes that the Bank of England will make the case for further monetary stimulus at its July 5 meeting.
While the markets seem to expect further action by the US Federal Reserve which could weaken the dollar (and has against most currencies), the latest meeting minutes from the Monetary Policy Committee of the Bank of England also suggest some members of that group leaning toward further monetary easing.
Two of the Bank of England's Monetary Policy Committee members voted for a rise at their last meeting.
He urged the Bank of England's Monetary Policy Committee to keep interest rates on hold at 6% at its meeting next month and to signal that rates will come down in future.
Sir Mervyn King, Bank of England governor, has sent a letter to other top central bankers inviting them to a September 9 meeting in Switzerland to discuss "radical reforms" to the Libor process.
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