The rate debate heats up
Article Abstract:
United Kingdom inflation could drop further as a result of the high value of pound sterling, and may even drop to 1.5%, if mortgage rates are excluded, which is below the target set by the government. Interest rates may still be raised since they take some two years to have an impact, and inflation may rise as economic growth accelerates in 2000. Inflationary pressure could come from wage inflation and a drop in the value of pound sterling. Other analysts see high investment levels as keeping inflation low, and inflation expectations as having dropped, so interest rates may not be raised.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
No danger
Article Abstract:
High stock prices are not likely to boost consumption so push up inflation in the United Kingdom, because few households own stocks, argues HSBC Markets. An increase in house prices may push up spending, so inflation, but asset price inflation is often preceded by stronger consumer spending rather than causing it. Stocks tend to be held by wealthier people who spend a lower proportion of their income, so are less likely to contrinute to inflation, but the Bank of England is still concerned about stock prices and may take some time to lower interest rates.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
The bank's fine monetary judgement
Article Abstract:
There have been calls for rises in United Kingdom interest rates due to concern over inflationary pressures, but these pressures may not be as serious as is feared. Retailers have tended to keep prices low, despite rising sales, and much of the gain form windfalls could have been spent. Increased money stock could be largely accounted for by institutions not likely to buy goods and services. Productivity has risen which helps offset wage rises, and the high value of pound sterling may help keep inflation low.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Defence deals heat up. Defence float hits shares. Raytheon: the best form of defence...
- Abstracts: The warrant supply dries up. All about equities. Warrant buyers: do you feel lucky?
- Abstracts: UK budget: not needed. Budget snapshot. Plus some other clever conjuring to consider
- Abstracts: U.S. taxation of foreign activities: where are we heading? No capital gain without pain. Tax legislation in 1997
- Abstracts: The last word on IASs. Concerted US opposition bodes ill for eventual SEC acceptance of IASs. How shall we regulate this?