Pound Gains For First Week In Three On Rate-increase Views

[Guest The_Oldie]

http://www.bloomberg.com/apps/news?pid=206...&refer=home

June 16 (Bloomberg) -- The pound gained for the first week in three on speculation the Bank of England will need to keep raising interest rates to slow the economy......

...... Interest-rate futures show investors are betting that the bank will continue raising rates.

The implied yield on the December interest-rate futures contract rose 1 basis point to 6.19 percent yesterday. It rose 39 basis points in the month through June 12. ......

[crashmonitor]

Yep those inflation figures on Tuesday were a bit of a disaster for Merv,I think he was counting on CPI having hit 2% by now with so many one off deflationary factors to hide behind.No doubt the fact that core inflation has again risen to 1.9%* and the increase for May MOM was still a hefty 0.3% alerted the market s to what a right f**k up the chumps are making of shadowing the target.

*the MPC relies on a core inflation rate of around 1.2% to hit a 2% CPI target because other components of the indicies average far more than 2%.

Edited June 16, 2007 by crashmonitor