Wednesday, Aug 02, 2006
Under Pressure...dun, du, du, dun, dun...
MoneyWeek: Why the Bank of England should raise interest rates
Interest rates are continuing to rise across the globe. With inflation above forecasts in most countries, it’s no surprise that central banks are getting twitchy.
The Reserve Bank of Australia raised the country’s key interest rate this morning. It now stands at 6%, the highest it’s been in nearly six years.
The European Central Bank is seen as almost certain to raise rates this week, to 3%.
But even though UK inflation is well above the Bank of England’s target level, a majority of economists still expect the key rate to remain at 4.5% when the Bank announces its latest rate decision tomorrow.
Posted by tyrellcorporation @ 09:55 AM (144 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. paul said...
Of course, I will feel compelled to repeatedly ridicule Uncle Tom at every opportunity if his "no change" prediction is wrong*.
Phew, with all the parping from bulls claiming that there's no case for a rise, this offers some respite. It will be a close call, and as I've said the MPC won't be able to keep everyone happy whatever they decide tomorrow. And as MoneyWeek rightly says wage inflation is very difficult to stop once it starts, and once it starts it spirals upwards. We'd very quickly have hyperinflation and an economy like that of Chile, or the Congo perhaps*.
* Not strictly true.
2. Sloth said...
As we've seen, voting for a rise in interest rates can put serious strain on the heart.
3. paul said...
Very dark humour, Sloth!