Thursday, July 20, 2006
Hawkish economists expect rates to rise as early as next month
The Office for National Statistics (ONS) said retail sales rose at a higher than expected 0.9% in May. Economists has expected 0.2%. David Page an ecomomist at Investec said, "We had pencilled in an August rate hike and, if anything, this number makes our view slightly firmer". The HSBC ecomomics team believe the data will not be sufficient to sway the MPC who they say will treat the data with an eye on a possible World Cup effect.