Sterling falls after BoE's King says open to more QE

* Sterling falls sharply after BoE's King comments

* King 'open-minded' on QE, stresses weak pound benefits

* Pound loses more than a cent vs dlr, above 90 pence/euro

(Updates with BoE Inflation Report, King comments)

By Jessica Mortimer and George Matlock

LONDON, Nov 11 (Reuters) - Sterling fell sharply against the euro and the dollar on Wednesday after Governor Mervyn King said the Bank of England was open-minded about pumping more money into the economy and highlighted the benefits of a weak pound.

King spoke after the release of the bank's quarterly Inflation Report, which showed UK inflation will be below its 2 percent target in two years. [ID:nLB401867] [ID:nLB169687]

The central bank last week increased its quantitative easing programme, under which it buys assets to inject liquidity into the economy, by 25 billion pounds, in what many in the market said was likely to be a final top-up.