Tuesday, October 31, 2006

Merv tries to play down the certainty of a rate rise

UK rates hike 'not a done deal'

The Bank of England governor Mervyn King has insisted that next week's widely-expected rise in UK interest rates is not a "done deal". Most economists expect the bank's Monetary Policy Committee (MPC) to raise the cost of borrowing by 0.25 points to 5% to peg back inflation.

Posted by webmaster @ 10:25 PM (9 views)
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6 thoughts on “Merv tries to play down the certainty of a rate rise

  • Very unexpected. Why would he say this if he is definately going to raise rates? Looks as if 5% will definately be the peak now if they are scared to even raise from 4.75%. High street shopping down, house price inflation easing (except in london) maybe they are thinking a 0.25% increase will be harmful.

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  • There seems to be a glut of positive news about the housing market today. What’s going on?

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  • Sir Webmaster…..

    As this is apparently your query to the crowd, I’ll ask what you did with the Blog of October 31st, which appears to have been erased? Spent a good while searching for comments of yester-year and have abandoned the hunt, realizing there is nothing at all with an Oct 31 date.

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  • Dear Webmeister,

    Don’t know if it’s my eyes or your housekeeping, but what I was reading is now “back” and I’ve found the thread I was interested to see.

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  • It damn well should be a done deal. There’s very few reasons for holding rates and none for lowering rates.

    I’m quite sure the slower foreign nationals amongst the MPC like Blanchflower, jetlagged and gin soaked will vote for a rate cut.

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  • Paul. They are very worried about an american and UK economic recession which would be worse than inflation. There probably are a few reasons for lowering rates but they don’t outweight the reasons for increasing or holding at the moment.

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