Published by Jamie JemmesonA former Bank of England (BoE) official has warned that additional quantitative easing could drive up inflation - which may hinder foreign exchange trading in the future.Sir John Gieve, the institution's deputy governor between 2006 and 2009, believes pressing ahead with a fiscal stimulus is unnecessary unless inflation "gets out of control", Investment Week reports.This, he said, is because this course of action could lead to inflation staying around the five per cent mark until 2016 at least.Sir John also suggested that the foreign exchange market may suffer if further quantitative easing goes ahead, due to the "disastrous" effect this move would have on exchange rates.He added that a further fiscal stimulus could also lead to a considerable devaluation of the pound, possibly of as much as 20 per cent.Adam Posen, a member of the BoE's Monetary Policy Committee, has already publicly backed the idea of putting a second round of quantitative easing in place in a recent speech at the University of Aberdeen.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site