Monday, July 30, 2007

Pound Resumes Rally Against Dollar on View Interest Rates to Rise Further

(Bloomberg) -- The pound resumed its rally against
the dollar today on expectations the Bank of England will raise
interest rates further this year to curb inflation.

The U.K. currency rose after the Centre for Economic and
Business Research yesterday said Britain's flood crisis could
force inflation to quicken to a decade-high, rather than decline
as forecast by the BOE. Policy makers will raise borrowing costs
to 6 percent by year-end after holding them at 5.75 percent at
their Aug. 2 meeting, Bloomberg News surveys predict.


Read more at Bloomberg Currencies News

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