DislikedI believe Mr Brown would not want interest rate rises, people in UK are struggling to pay huge mortgages to pay for super high house prices. Higher mortgage repayments each month will essentially mean less spending in the shops and retail will be affected.
Many young people like me cannot afford to buy a home. Also key workers such as police, nurses etc cannot afford to live in the cities due to high house prices and low wages. Increased interest rates will further make this an issue.
Politically it will not be good for Brown IMO and will not help the people of the UK who have a mountain of personal debt (record levels ever about £18000/$36000 or thereabouts and this excludes a mortgage!) . Mr Brown and his famed economy eh, hes not leaving a nice job to the next chancellor!
LIBOR rates have already been priced to 5.75%
I believe it will eventually happen but not til July/August. Inflation reports are key.Ignored
But, the market doesn't have this common sense approach to valuing a currency, hence good US news and mixed GB news appears to mean a medium range market consolidation and not to sell GBP massively.
I can only assume that there are still major concerns about the US economy.
We shall see...