LONDON (Dow Jones)--Sterling traded at a new eight-month low against the dollar Wednesday and it was inching closer to an all-time low against the Japanese yen, after the Bank of England's minutes showed an increasing likelihood the central bank would adopt more stimulus measures. The minutes from the BOE's Monetary Policy Committee meeting earlier this month showed that policy makers are considering more quantitative easing measures, although only Adam Posen voted for more QE at the meeting. Sterling dropped to a fresh eight-month low against the dollar, trading as low as $1.5615 before regaining some ground. The pound also slipped against the yen, trading at the day's low of Y119.23 and inching closer to an all-time low at Y118.89. -By Eva Szalay, Dow Jones Newswires; 44 20 7842 9305; (eva.szalay@dowjones.com) (Adds quotes and details throughout.) By Eva Szalay Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Sterling regained some lost ground Wednesday after trading at a new eight-month low against the dollar and inching closer to an all-time low against the Japanese yen, after the Bank of England's minutes showed an increasing likelihood the central bank would adopt more stimulus measures. The minutes from the BOE's Monetary Policy Committee meeting earlier this month showed that policy makers are considering more quantitative easing measures, although only Adam Posen voted for more QE at the meeting. "The minutes of September's MPC meeting strongly suggest that QE2 is set to be launched in the very near future," Capital Economics said in a note to clients. Sterling dropped to a fresh eight-month low against the dollar, trading as low as $1.5615 before regaining some ground. The pound also slipped against the yen, trading at the day's low of Y119.23 and inching closer to an all-time low at Y118.89. "[The pound] it will struggle to make gains over coming weeks as markets shift expectations for a U.K. QE2 to the November meeting," said Mitul Kotecha, head of global forex strategy at Credit Agricole. The pound started the year as one of the best performing currencies as rate-hike expectations buoyed the currency's prospects. However, as growth concerns have intensified, sentiment has changed and the pound has been steadily edging lower. At 0903 GMT, the pound was trading at $1.5641 and at Y119.45. -By Eva Szalay, Dow Jones Newswires; 44 20 7842 9305; (eva.szalay@dowjones.com)

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