Monday, Jun 25, 2007

UK consumers believe that interest rates will go up again in the next twelve months

TELEGRAPH UK: Job security hit by interest rate hikes

Workers' fears over further interest rate rises has led to a "big tumble" in confidence over job security, according to a new survey by Lloyds TSB.With confidence at an "all-time survey low", Lloyds' chief economist has warned that consumers may cut back on household spending, which will restrain economic growth

Posted by out of control speculators @ 03:13 PM (132 views) Add Comment

2 Comments

1. Orwell said...

I don't quite understand this article, can anyone assist?

The city is pricing in IR's at 6% (or even by some measures 6.5%).

Has somebody been saying they won't then?

Monday, June 25, 2007 05:39PM Report Comment
 

2. Nadeem Walayat said...

The Bank of England has lost control of inflation.

The problem is they are ignoring the primary driver of future inflation which is the expansion of the money supply, which for the last 2 years has been running at above 10%, the last figure was 13.9% for May 07.

This is having the effect of stoking up future inflation. Without addressing the causes of the money supply growth i.e. excess government spending, then the rate rises are only going to push the economy towards stagflation.

More on this here - http://www.marketoracle.co.uk/Article1453.html

Thursday, July 5, 2007 11:27PM Report Comment
 

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