|
|
| World Home » Business » | Thu. Nov 20, 2008 |
 |
|
|
||||||
|
Interest rates left unchanged MIL/Agencies, Feb 8, 2007. Richard Blackden February 08, 2007 - The Bank of England has today left interest rates unchanged at 5.25pc, in a move that was predicted by most City economists. The decision by the Bank’s Monetary Policy Committee comes after the shock move in January to lift rates to 5.25pc, the third upward move in the cost of borrowing since August. The MPC did not provide any explanation for its decision today. Governor Mervyn King and the eight other members of the MPC will give a full explanation of their decision when they present their projections for inflation next week. The decision suggests that the inflation concerns of the hawks on the MPC may have weakened. January’s decision was a 5-4 split, with Governor Mervyn King siding with those in favour of higher rates. Still, rising energy bills and still-buoyant consumer spending pushed inflation to 3pc in December, the highest in a decade, and above the Bank’s target of 2pc. An inflation print above 3pc will force Governor Mervyn King to write a letter of explanation to chancellor Gordon Brown. MPC members will have had access to as-yet-unreleased inflation figures for last month. Since the increase in January, reports have shown that the manufacturing sector remains in good health, with overall growth stronger than expected, as per telegraph.co.uk. Policy makers will also have been aware that the first indications from this year’s round of wage negotiations showed pay rises have hit a nine-year high of 3.5pc. Most City economists still expect another upward move later this year. The well-respected National Institute for Economic and Social Research said in a separate report today that “our recent quarterly forecast pointed to the need for at least one further interest-rate increase in order to keep inflation in check.” Mortgage lender Halifax warned this morning that a further increase today would significantly dent the housing market, which many are already forecasting will slow from 2006’s double digit pace.
|
 |
|
Applelounge Network (Website Design India, Web Design India) Sites |