Thursday, Nov 23, 2006

City analysts think further IR rises unlikely

London Stock Exchange: nterest rates predicted to remain at 5%

Following the Bank of England's (BoE) decision to raise interest rates by 0.25 per cent earlier this month, economy experts are predicting that interest rates will remain at the current level into 2007. In response to the publication of the minutes from the BoE's monetary policy committee meeting, Global Insight states that conditions within the current labour market will limit wage increases, meaning the BoE is unlikely to raise interest rates further.

Posted by jellycaster @ 03:46 PM (466 views)
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1. Logman said...

Was anyone expecting rates to rise before the end of the year? That is all this report is saying and isn't really "news"

Thursday, November 23, 2006 04:34PM Report Comment

2. harold said...

Gosh, the London Stock Exchange - now there's an independent voice.

Pointless posting from the Jelly

Thursday, November 23, 2006 11:15PM Report Comment

3. jellycaster said...

Pointless because you disagree with it Harold?

Friday, November 24, 2006 12:37AM Report Comment

4. Nohpc said...

I think it is very realistic. I think rates me go up another 0.25% but I also see them ending 2007 less than 5%. Inflation cannot continue if people don't have money in their pockets and apparently they don't. Even if somebody gets the RPI wage increase the higher earners after tax will only be earning about1.5% more per year. I do not see how this can influence inflation as most people are just about scraping by.

Friday, November 24, 2006 01:16AM Report Comment

5. paul said...

Jelly, this is idle speculation from a biased source.

The media learned a while ago that if you want a certain answer you ask a certain person (or group). Its only news when one of the usual sources says something unusual (like last weeks forecast of an upcoming massive house price crash).

Unfortunately, this also means that unless the reader is discerning, the usual rubbish from the usual sources starts to look like news as well, when it isn't.

Friday, November 24, 2006 09:28AM Report Comment

6. David20040_0 said...

The Bank of England has actually seen that house prices could dip, gosh they can't have that, must keep rates the same or drop, they will pull them back down to under 5% if a slowdown happens.

Friday, November 24, 2006 11:15AM Report Comment

7. jimmytennor said...

Hang on guys - Jelly is just posting an article that relates to this discussion. Surely all articles, no matter what your thoughts of the provider are, are relevant to the topic in question.
We have to include all sources, predictable or not?

Friday, November 24, 2006 11:56AM Report Comment

8. jellycaster said...

Precisely Jimmy,

I didn't post this article with intention of presenting it as an unbiased fact. Just because it has been published by the LSE doesn't mean it isn't worth reading. I think if you really want to have an informed opinion about something like this it is necessary to look at the whole spectrum of opinion, rather than the one that accords with your line of thought.

Friday, November 24, 2006 02:25PM Report Comment

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