Thursday, July 5, 2007

Pound Climbs to Near 26-Year High Against Dollar After BOE Raises Rates

(Bloomberg) -- The pound traded near a 26-year high
against the dollar after the Bank of England raised interest
rates and signaled that further increases are needed to curb
inflation.

Policy makers lifted borrowing costs a quarter-point, to a
six-year high of 5.75 percent, for the fifth time in 12 months.
Expectations for further increases this year matched a record
high today, futures trading showed. The BOE said inflation risks
in the medium term ``lie to the upside.''


Read more at Bloomberg Currencies News

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