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mpc: 4 The expectation of a rise in official interest rates in the United Kingdom had receded somewhat. Market contacts had suggested that the probability of an increase by February 2007 had fallen to below 50%. Financial market expectations of sterling and euro rates for mid-2007 had fallen by around 15 basis points although longer-term forward rates were little changed. In contrast, dollar interest rates had fallen by a little more from mid-2007 onwards. These relative changes seemed to be consistent with the direction of exchange rate movements on the month.