Rate dilemma
Article Abstract:
The Bank of England has to decide on UK interest rates through its Monetary Policy Committee. One factor that could fuel inflation is the high proportion of free stocks from building societies that could be sold and spent, a figure that could be higher than forecast. A rise of 0.25% is expected in Jun 1997, though there could be a delay until Jul 2 1997 when the Budget will be revealed. Pound sterling has risen in value due to concerns over European monetary union and the likelihood that the new European currency could be weak. This means that UK interest rate changes could be delayed.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Ken and Eddie ticked off
Article Abstract:
The UK chancellor has been criticized for a forecast of economic growth of 3% for 1996 by the Treasury Select Committee. The committee argues that more interest rate reductions will be needed to achieve this. The Bank of England has also been criticized for a too pessimistic view of UK inflation prospects, and there is a danger that such forecasts will not be taken seriously if they are persistently wrong. The committee itself has been criticized by the Bank of England which recognizes that all forecasts may contain errors.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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UK economy: rate rise pressure
Article Abstract:
The Bank of England may call for a rise in UK interest rates in Dec 1996. The governor of the Bank of England, Eddie George, is concerned about inflationary pressures arising from stronger consumer spending. UK inflation is estimated at 3.3% for Nov 1996. Economists forecast that Kenneth Clarke, UK chancellor, will reject a call for an interest rate rise in Dec 1996, but rates are expected to rise in the following months, and mortgage lenders are already increasing their interest rates.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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