British prime minister Gordon Brown's economic woes deepened today after it emerged that the Bank of England's second-in-command was stepping down.

The pound remained close to its highest level against the dollar since sterling left the Exchange Rate Mechanism (ERM) in 1992, despite positive economic news from the United States today.

The pound eased away from the two-dollar mark today after trading within a whisker of its highest level since sterling was ejected from the Exchange Rate Mechanism (ERM) in 1992.

A dissenting voice to this month’s rise in UK interest rates said today there were no signs the economy had been “running too hot” ahead of the vote.

Pressure for a rise in interest rates eased slightly today after UK economic growth was left unchanged at 0.7% in the final three months of 2004.