Monday, June 11, 2007

Bank of England's King Says May Need to Take `Further Action' on Inflation

(Bloomberg) -- Bank of England Governor Mervyn King
signaled U.K. interest rates may have to rise further from a six-
year high if measures of inflation pressures stay close to their
current levels.

``The Monetary Policy Committee will be watching closely
indicators of capacity pressures, pricing intentions and inflation
expectations,'' King said in a speech to business executives in
Cardiff, Wales, yesterday. ``If these indicators remain elevated,
the MPC may need to take further action.''


Read more at Bloomberg Bonds News

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