UK interest rates: over to Ken

Article Abstract:

UK interest rate policy depends on whether the chancellor, Ken Clarke, loosens fiscal policy in fall 1995. Looser fiscal policy means that interest rates would be more likely to rise. Indirect taxes are likely to be raised and direct taxes reduced. The net effect could be 2 billion pounds sterling less in amounts taken in tax. Interest rates would stay stable only if demand were subdued. A revival in demand would mean a rise in interest rates in April 1997. NatWest Securities foresees a rise in rates to 7.25% in 1996, and a further rise to 8.75% in 1997.

---

Misplaced hopes of a lower pound

Article Abstract:

The United Kingdom Jul 1997 Budget could lead to a drop in the value of pound sterling if it means that interest rates are not likely to be raised by as much. This is not inevitable, however, and tight fiscal policy and rises in the value of a currency are often linked. Tight fiscal policy may appear to reflect responsible government which attracts foreign investment, in turn boosting currency values. Pound sterling could fall as interest rates rise elsewhere in Europe.

Legislative Bodies, Budget, Economic aspects, Pound (United Kingdom)

---

UK interest rates: a small cut

Article Abstract:

UK interest rates could be reduced argues Goldman Sachs. A reduction of 0.25% by Mar 1996 may be implemented as a precautionary measure to prevent a downturn. Inflationary pressures appear to have eased with a drop in the purchasing Managers' Index, and output price inflation looks set to drop. Wage growth could lead to concern over inflation in 1997. Pay settlements are gradually rising and headline inflation could reach some 3.5% by year-end 1995.

Similar abstracts:

• Abstracts: US interest rates: whoops of joy. A late Christmas present from the Fed
• Abstracts: Tread carefully to ensure success. The ins and outs of executive recruitment. Outplacement services: what they offer
• Abstracts: New pub operators: pleased as a newt. Economy. BT television threat battles cable shares
• Abstracts: European privatisations: nothing to fear. Europe: insulated. Europe: policy bets
• Abstracts: Some unpleasant Japanese lessons. Japan: picking up the tab. Japan: in suspense

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.