Chancellor faces rough ride over Sterling

By FWi staff

CHANCELLOR Gordon Brown will answer some stiff questions over the rise in the Pounds value when he appears later today (Tuesday) before the cross-party Commons select committee on the Treasury.

Sterling has risen by 2% in the two weeks since the Budget. The Pound closed trading yesterday at a 10-year high of DM3.099 against the Deutschmark.

Many Labour MPs are said to be worried that the Chancellors economic policies threaten to hit exports and increase unemployment. On Thursday, they will question Bank of England governor, Eddie George, over his interest-rate policy, which critics say is driving the Pound higher.

The Bank of Englands Monetary Policy Committee will meet next week to decide whether to raise interest rates.

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