Base rate babel
Article Abstract:
There is disagreement among economists on UK interest rate trends. UK base rates could stay at 6.7% in late 1995 and 1996, according to views expressed in futures prices, but there is a division of opinion on whether rates will then rise or fall. The direction of rates depends in part on inflation. A rebate from UK electricity companies in 1996 could push down inflation. Inflation may thus fall despite tax cuts likely to be implemented for political reasons.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Global economy: disinflation
Article Abstract:
The world economy could see low growth in 1996, and interest rates are likely to fall except in the Japanese economy, argues Salomon Brothers. Inflationary pressures should let up with the US economy slowing down. Long bond yields look set to drop. German economic growth is also subdued. Japanese growth should be helped by loose monetary and fiscal policies but structural reform is needed if this growth recovery is to continue.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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