LONDON (AFP) - The pound bounced higher against the dollar and the yen Tuesday but was down against the euro as the euro hit a new record high against the dollar.
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Rate setter Tim Besley said the Bank of England's liquidity scheme announced Monday will help the rate setting committee focus on the job of keeping inflationary pressures in the United Kingdom's economy in check.

Besley, one of the four external members on rate setting panel, said the scheme should "allow the MPC to stay more focused on its task of using monetary policy to target inflation."

The pound had been under pressure on Monday following the announcement of the scheme as market players viewed the plan with scepticism and expressed concern over its expense.

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