Sonia Mirza

The Fed Drama Builds: Bank of England Makes Things More Interesting

I think you're not considering the fact that there is an ECB imposed inflation target (ceiling = 2%). Hence, looking at the UK economy alone doesnt give you the whole picture on why they might be raising rates. This has always been a source of tension for all EU members - the welfare of your nations economy doesn't always correspond 1:1 with what is best for the EU as a whole. They are presently over the 2.0 inflation ceiling, with a forecasted annual inflation rate for 2007 of 2.5

infer from this what you will, but to compare the uk economy/int rates with the us alone isn't apples:apples.