Sunday, Aug 13, 2006

Interest Rates & Inflation

Sunday Herald: Economic comment

The publication of the Bank of Englands Inflation Report last week gives us a better understanding of where it thinks inflation and, by implication, interest rates are likely to move over the next two years. The Bank expects inflation to return to its target in 2008, but only if interest rates follow the path implied by market expectations. The market has priced in another one and perhaps two additional rises in base rates over the next 12 months.

Posted by jason @ 01:46 AM (479 views)
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