Why higher pound interest rates send sterling even higher

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1. Explain the differing initial and subsequent reactions of the euro to news about the European Central Bank's monetary policy.

2. How does a strong pound reduce the threat of imported inflation and work against higher interest rates?

3. Which U.K. manufacturers are likely to be pressured by a strong pound?

4. Why might higher pound interest rates send sterling even higher?

5. What tools are available to the European Central Bank and the Bank of England to manage their monetary policies?

Reference no: EM131277936

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