Why the Bank is probably right on rates again
Article Abstract:
The Bank of England and the Treasury both believe that UK chancellor Kenneth Clarke should increase interest rates, even though retail sales over the Christmas 1996 period were not particularly strong and recent inflation statistics have not really given any cause for concern. The key areas of conflict are the extent of labour market tightening, the accuracy of the GDP data and whether the rise in sterling makes it unnecessary to raise domestic interest rates. If no rise in interest rates takes place soon, there is a danger that sterling will fall and inflation pressures will emerge.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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Bank down but not out in the inflation fight
Article Abstract:
The Bank of England believes that there is an unacceptable danger of inflation going about the UK government's target in 12-24 months. It feels that action must be taken immediately to ensure that this risk is avoided. This view is bringing it into direct conflict with chancellor Kenneth Clarke, who is determined that interest rates will not rise before the forthcoming general election. Many observers feel that the monetary control mechanism set up in 1992 has not been successful, as Kenneth Clarke has been able to override the Bank of England.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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Will the Chancellor overrule the Bank again?
Article Abstract:
Economic experts believe that neither the Treasury nor the Bank of England are in favour of a large cut in base rates at present. However, it is not impossible that chancellor Kenneth Clarke may decide to go against this view and introduce a large cut. Some observers feel that Kenneth Clarke could be planning to reduce base rates in retaliation for remarks made by the governor of the Bank of England which appear to criticise his decision not to change base rates in May 1995.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1995
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