18 November 2009

Pound Rises on Inflation Figures

The future of Britain's economy is still a cause for concern for many economists. Today, there are divides again between financial experts - what does the economy need? How can a W shaped recession be avoided? - the debate has been raised again thanks to the latest inflation figures which have been released by the ONS.

Some argue that now, the QE programme needs to be halted because of the inflation threat. Others say that halting the scheme could be disastrous for the economy. The central interest rate is also a topic for discussion, as some wonder whether it needs to be raised sooner than planned on the back of the latest inflation figures.

The currency exchange market reacted with investors heading back to the pound - it rose against the euro and the US dollar after the figures were announced.

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