Wednesday, May 23, 2007

U.K. Pound Climbs as Bank of England Minutes Signal Further Rate Increase

(Bloomberg) -- The pound advanced after minutes from
the Bank of England's last rate-setting meeting showed policy
makers voted unanimously to increase interest rates by a quarter
point this month.

The U.K. currency rebounded against the dollar and climbed
to a two-week high versus the euro as Monetary Policy Committee
members said in the minutes borrowing costs may need to rise
again. The central bank hinted at higher rates in its quarterly
inflation report last week as it seeks to get the pace of price
increases back toward its 2 percent target.


Read more at Bloomberg Currencies News

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