Thursday, July 12, 2007

U.K. Pound May Decline on Signs Pace of House-Price Inflation Is Slowing

(Bloomberg) -- The pound may decline for a second
day on evidence house-price growth in the U.K. is slowing,
fueling speculation higher borrowing costs are starting to cool
the property-market boom.

The U.K. currency slipped from its highest since June 1981
after a report yesterday showed property values in Britain rose
at the slowest rate since January 2006 last month. Interest-rate
futures trading shows traders have scaled back bets the Bank of
England will raise interest rates to 6.25 percent this year.


Read more at Bloomberg Currencies News

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