The pound sterling sharply lower after King statement, the depreciation of the pound is good for the UK economy.

[RTFX-Trading]

The pound sterling sharply lower after King statement, the depreciation of the pound is good for the UK economy.

The Governor of the Bank of England Mervyn King said in an interview published today that the British economy shows signs of recovery, but any improvement is likely to be small compared to the sharp drop in production caused by the global financial crisis. His remarks on growth are broadly in line with the testimony he gave to British lawmakers last week, and he also reiterated his view that Britain needed to rebalance its economy to focus more on exports. "The fall in the exchange rate that we saw will be helpful in this process, but there is no doubt that what we see now is a shift of resources towards net exports. King declined to comment specifically on the predictions of the Confederation of British Industry predicted that growth would be only 0.1 per cent during the first three months of next year.

The pound has plummeted following the declaration of more than 1% against its rivals.



Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.