Jump to content
House Price Crash Forum
Sign in to follow this  
CrashConnoisseur

Guardian: Strong Services Crush Rate Cut Hopes.

Recommended Posts

Guardian: 'Strong services crush rate cut hopes':

http://business.guardian.co.uk/story/0,,1722983,00.html

Prospects of an early cut in interest rates faded sharply today after a stronger expansion than expected in the services sector in February.

To analysts' surprise, the purchasing managers' index from the Chartered Institute of Purchasing and Supply (CIPS) rose to 58.9 last months from 57 in January. Any reading above 50 signifies expansion.

The expansion in services, which accounts for 60% of economic activity, was the fastest in almost two years and defied expectations that the Bank of England's monetary policy committee (MPC) will cut rates in the next few months.

[...snip...]

Today's survey will reinforce the Bank of England's view that growth will pick up later in the year and put Bank policymakers at odds with most City analysts, who regard the MPC as too optimistic.

[...snip...]

Though the services sector grew at a robust pace last month, prices are not rising as firms are struggling to pass the high costs of fuel, energy and raw materials on to customers.

Neither is stronger growth translating into accelerating employment, with some firms reporting job cuts because of costs. The average prices the service sector companies charged rose at the slowest rate since August last year.

Share this post


Link to post
Share on other sites

Guardian: 'Strong services crush rate cut hopes':

Everything is beginning to point to Interest Rates going UP. When will the first dissenter at the MPC vote for a rise?

If someone votes for a hike will the media even report it ? My guess is they won't. They'll probably carry on reporting any tenuous link to a possibilty of a cut, though.

Share this post


Link to post
Share on other sites

Everything is beginning to point to Interest Rates going UP. When will the first dissenter at the MPC vote for a rise?

If someone votes for a hike will the media even report it ? My guess is they won't. They'll probably carry on reporting any tenuous link to a possibilty of a cut, though.

I don't think that it does. I suspect that we'll see rates steady at the moment, the UK economy is too much of a mixed bag at the moment, some areas really struggling and pther stomping away. I reckon most MPC members will sit on their hands for now.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.