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Bo E Urged To Raise Interest Rates By Economic Group

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Bank of England urged to raise interest rates

Fri Jul 28, 2006 7:14 AM BST171
LONDON (Reuters) - The economy is picking up faster than expected and with inflation likely to remain above target for some years, the Bank of England should raise rates sooner rather than later, a think-tank said on Friday.
The National Institute for Economic and Social Research
said the economy would continue to expand at its long-run average rate in the second half of this year, with official data showing the recovery from a weak 2005 was faster than it anticipated.
Growth for 2006 as a whole would come in at 2.5 percent and pick up a bit more in 2007 and 2008, it said.

It is possible that Gordon has already moved the goalposts to 2.5% as the MPC appear to be unanimous in seeing no inflation in the economy that would warrant derailing HPI-MEW with a rate hike.

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Bank of England expected to stand pat on rates
ONLY seven of 46 economists polled by news agency Reuters this week expect the Bank of England to raise interest rates next Thursday.
The significant majority expecting the monetary policy committee to hold UK base rates at 4.5% at the end of its next two-day monthly meeting on August 3 chimes with signals in recent speeches from Bank of England governor Mervyn King and deputy governor Sir John Gieve.
They have signalled a wait-and-see stance.

Wait & See? What--that inflation will decrease when prices for every non-discretionary is skyrocketing? Or are they hoping the US slowdown will bring recession, unemployment, lower rates and a HPC al in one package?

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  • 312 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%
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