Wednesday, May 23, 2007

U.K. Pound May Advance as Bank of England Signals Interest Rate Increase

(Bloomberg) -- The pound may extend gains against the
dollar after Bank of England policy makers yesterday signaled the
need for more interest rate increases.

The pound yesterday posted its biggest one-day gain against
the dollar since April 17 when a report showed inflation breached
the central bank's target by more than a percentage point. Minutes
from the last rate-setting meeting published yesterday showed
policy makers voted unanimously to increase interest rates to
combat price increases.


Read more at Bloomberg Currencies News

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