Pound Holds Above $2 After Bank of England Increases Interest Rates

(Bloomberg) -- The pound held above the $2 mark after
the Bank of England raised interest rates and signaled that
further increases may be needed to curb inflation.

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


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