Wednesday, Jun 06, 2007
MPC - have they got the time to 'pause and reflect'?
Firstrung: Interest rate rise likely in summer but not tomorrow - Lloyds TSB
"We may well see a rate rise before the summer is out, but a move this month is highly unlikely. We've seen rates increased four times since August last year and the effects of these are only just starting to show through - inflation is coming off the boil, the housing market is cooling and signs of slower activity are appearing in the retail sector. However, it's still too early to judge the full impact of these cumulative increases, especially those that have taken place in the past nine months. The most likely outcome of this month's meeting is that the MPC will opt to hold rates and buy time to gauge the impact of recent increases, before making another move."
Posted by converted lurker @ 12:34 PM (140 views) Add Comment
4 Comments
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1. Ticktock said...
'inflation is coming off the boil' proclaim Lloyds!
Anyone banking with Lloyds may be entitled to worry that they have either entrusted their nest egg with either liars, or fools (or both)
2. george monsoon said...
"inflation is coming off the boil" - yea only because the pan has dried up and the bottom is burning through..
I think there may be a surprise move tomorrow with a rate rise, when everyone is expecting it to stay static.
I have already put my spreadbet on the FTSE for tomorrow...
3. confused76 said...
check at the link. latest consumer survey shows upbeat confidence. that, plus today;s decision by ECB, may make a IR rise tomorrow possible (... I am not saying likely but at least possible)
http://uk.reuters.com/article/domesticNews/idUKL0565651520070606
4. paul said...
They'll perk up to intone "steady as she goes" and then fall back asleep on their leather sofas.
Of course the last time inflation dipped like this slightly it was followed by another on-trend upwards swing, and judging by the ONS graph, I can see that happening again (sorry to post it here as well):