IMF Chief Dominique Strauss-Kahn is presently behind bars at the Rikers Islands facility in New York...

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 19, 2011 --
Sterling went down due to Bank of England minutes and disappointing UK employment report. The Bank of England policy minutes displayed an uncertain appearance for the British economy. The minutes of the Bank England’s meeting held in may, showed a fixed 6-3 majority and the need for an increase in UK interest rates showed a little promise in the near future.

The Bank of England is under pressure due to the situation of the inflation reaching an economically fluttering level. Hence, the BOE wants to act quickly and want to find some sort of innovative solution to counteract the high cost of living. The general tendency is to increase the interest rates so that the cost of borrowing is increased. This condition will lower consumers spending and it will lead to a decrease in the inflation level. However, with the release of the Bank of England’s minutes, it was revealed that there is no change in voting for either the key interest rate or the central bank’s asset purchase program. The latest news was followed by UK unemployment statistics which showed that the number of unemployed fell by 36,000 to an overall figure of 2.46 million. Hence, the UK unemployment rate went down from 7.8% to 7.7%.

IMF Chief Dominique Strauss-Kahn is presently behind bars at the Rikers Islands facility in New York, facing charges of sexual assault. Due to his situation, the world’s most powerful financial institutions is in chaos, with market experts predicting that a larger complex outcome could take place for the European and global economy. Strauss – Kahn had a powerful influence but he was unpopular in preventing debt defaults in Euro- Zone nations, including Greece and Portugal. John Lipsky is the temporary head of IMF. He is highly respected former US, Treasury official. He was also a onetime JP Morgan Chase executive. However, he is not a well known world politician. Hence, many are thinking whether IMF will become week in making the case for its major counterparts during the overnight trade.
During the overnight trade, US Dollar had weakened against most of other currencies. But it regained after the influence of investors. According to FOMC minutes, few official saw a rise in inflation and most officials prefer to raise rock- bottom interest rates. They want to do this before the assets are sold during the time of tightening the policy, lifting US bond yields. IN real term, US retail sales are sluggish.

According to American statistics, the Americans are trying to eliminate debt and increase savings. Based on the American debt ceiling, the law requires that if the government cannot stay under the debt ceiling, it has to then authorize more spending or the budget has to be balanced accordingly. By balancing the budget, the country will not have to spend more than what the government takes. It is a known fact that the US government is in a debt trap. By putting a stop to borrowing and spending could create an economic depression. However, the situation can go worse if it continues to borrow at the current pace.

More information can be found online at http://www.moneyex.co.uk

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