By Candice Zachariahs Oct. 17 (Bloomberg) -- Investors should buy the British pound against the euro as the Bank of England will cut interest rates faster that the European Central Bank to battle slowing growth, RBC Capital Markets analysts said. ``Policy making in the U.K. is likely to look like a speedboat compared to the European supertanker going forward,'' wrote a team of analysts including Toronto-based David Watt, a senior currency strategist at RBC, in a research note yesterday. ``Difficulty in reaching a consensus will stop the ECB delivering the rapid and aggressive cuts the economy needs.'' Prime Minister Gordon Brown's government said Oct. 8 it will buy as much as 50 billion pounds ($86.6 billion) in equity stakes in banks and 250 billion pounds in interbank loan guarantees to shore up its banking system. European leaders followed on Oct. 12 with an agreement to guarantee new bank debt, let governments shore up banks and recapitalize any ``systemically'' critical banks in distress. Investors should buy the pound versus the euro with a target of 76.10 pence per euro. They should exit the trade if the currency falls to 78.90 pence. The pound traded at 77.83 pence per euro at 7:02 a.m. in Tokyo from 77.77 yesterday. The Bank of England and the European Central Bank reduced their benchmark rates by 0.5 percentage point on Oct. 8 in a coordinated cut with central banks including the Federal Reserve, cutting borrowing costs to 4.5 percent and 3.75 percent, respectively. To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

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