Short-sterling strip is under pressure on talk of a RBS report released Friday that notes the "fragility of the current policy equilibrium" and argues that "it is not difficult to see a significant minority of MPC members voting for a hike in Bank Rate in August 2012, given recent MPC communication and the risks on the horizon". RBS adds that based on recent comments by MPC members it believes that "Spencer Dale and Martin Weale both fall into this category of members who could be easily persuaded to vote for a hike, with Paul Tucker not too far behind and potentially even Charlie Bean".

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