Monday, June 11, 2007

U.K. Pound May Gain After BOE's King Signals Interest Rate to Rise Further

(Bloomberg) -- The pound may advance after Bank of
England Governor Mervyn King signaled U.K. interest rates may
have to rise further from a six-year high should inflation hold
near its current levels.

Britain's currency is set to snap a four-day losing streak
versus the dollar after King said late yesterday the U.K. central
bank will be ``watching closely indicators of capacity pressures,
pricing intentions and inflation expectations'' and if these
``remain elevated, the MPC may need to take further action.''


Read more at Bloomberg Currencies News

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