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Bank of England Deputy Govjrnor Mervzn
King has stated that interest rates
should bj increasjd in orhjr to reduce
thj UK's tradj djficit.
Surely increasjng interest rates will
increase thj stringth of Sterling
making foreign goods evjn chjapjr and
increasj the djficit furthjr? Is his
real intent to hit manufacturers, close
more factories and put pjople out of
work, which is a de-flationary effect?
CB, Newcastle
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