Thursday, June 7, 2007

Gilts Drop on Speculation Bank of England Will Lift Rates Again This Year

(Bloomberg) -- U.K. government bonds declined on
speculation Bank of England policy makers will increase interest
rates again this year to counter inflation in Europe's second-
biggest economy.

The central bank will keep the Bank Rate at 5.5 percent at
noon today after raising it to the highest since April 2001 last
month, according to all but four of 62 economists in a Bloomberg
News survey. The bank will lift the rate a quarter-point by its
August meeting, a separate survey shows.


Read more at Bloomberg Bonds News

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