Friday, Jan 12, 2007
The Bank of England delivers a short sharp shock
MoneyWeek: The Bank of England delivers a short sharp shock
The Bank of England's decision to raise interest rates yeterday came as something of a surprise. But in the light of the latest inflation data, not to mention the UK's housing hysteria, the question is: will it be enough?
Posted by mary @ 10:37 AM (187 views) Add Comment
1 Comment
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1. C'mon Correction said...
I have today recevied an email from our corporate manager at Royal Bank of Scotland. He has forwarded an email of advice (to all clients, me included) that was sent to all managers at RBS from their chief economist Neil Parker. It says it seems the rate rise has geniunely taken a lot by surprise. He mentions the money markets have got the Mar'07 short LIBOR at 5.71% which makes it a 'certainity' of another rise by March, although RBS are gambling April for the hike. He goes on to mention it is now likely 5.75% will be seen this year. Also shop prices are rising so fast, that decreases in oil and heating bills later in the year will be little consolation and inflation will remain high.
Ouch !