Finance, Forex and Investments

uk_interest_rates_Dec06_chart.gif

Summary: a US slowdown or sterling strength is not going to prevent the Bank of England from raising interest rates during 2007. The question is not if, but rather how high will interest rates go ! The above chart shows that interest rate futures are already discounting a further rise by March 2007 to 5.25%. A rise to 5.5% is also expected with the 3 month LIBOR forecast to hit to 5.75

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