Thursday, May 10, 2007

UPDATE 1-BoE raises UK rates to six-year high of 5.5 pct

(Reuters) - All 61 analysts polled by Reuters had predicted the move which takes borrowing costs to their highest level since May 2001. But financial markets reacted strongly initially, only for prices to move back to where they were minutes afterwards.

"The risks to the outlook for inflation in the medium term consequently remain tilted to the upside," the central bank said as it explained the hike.


Read more at Reuters.com Bonds News

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