Bank of Georgia IPO to raise 83 million pounds

LONDON (Reuters) - Bank of Georgia said on Friday it expected to raise $160 million (83 million pounds) in a share flotation that will make it the first ever company from the former Soviet Union country to list in London. Full article from Reuters UK

Dovish Blanchflower pushes sterling to 1-wk lows

LONDON, Sept 27 (Reuters) - Sterling fell to a one-week low versus the dollar and slid from recent peaks against the euro on Wednesday, after Bank of England policymaker David Blanchflower sounded a cautious note on the economy.

Sterling's losses were accentuated by downward revisions to second quarter economic growth and the GDP deflator.

Blanchflower said inflationary expectations had levelled off, the labour market looked set to weaken further and the economy may have more capacity than data have indicated.

BoE's Deputy Governor Sir John Gieve also sounded less hawkish than earlier in the week, warning on Tuesday that a November rate hike could not be taken for granted as any move would depend on how the economy developed.
Full article from Reuters

MPC decision to hold rates this month was unanimous

Monetary Policy Committee voted 8-0 for keeping the cost of pound sterling borrowing in unchanged after after the surprise quarter percentage point hike the month before. Current rate is 4.75%
Source FT.com on Yahoo! Finance

Commentary: USD driven by rate differentials

Over the past 6 months, the Euro and Pound Sterling have risen steadily in value against the USD. Labor and market reforms are forcing European companies to become more competitive. Hence, the economies of Britain and the EU are finally beginning to show signs of life. While economic fundamentals have certainly contributed to currency appreciation, they must take a back seat to interest rate differentials in any analysis of currency markets. Economists reason that interest rate differentials represent a leading indicator for foreigner’s willingness to continue financing the US current account deficit. That is, if US capital markets can continue to offer foreigners attractive returns, then they will continue to park their savings in the US.
In details from FOREX BLOG