Pound Set for Weekly Gain on Speculation Bank Will Need to Raise Rates

(Bloomberg) -- The pound advanced, headed for its
first week of gains in three, on speculation the Bank of England
will need to keep raising interest rates to slow the economy.

BoE Governor Mervyn King this week said the bank ``may need
to take further action'' to contain inflation, even after it
boosted the main lending rate to a six-year high. Data showing
that inflation slowed last month may not change the direction of
bank policy. Policy maker Paul Tucker today said a pickup in money
growth is an ``amber light'' on future inflation.


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