Thursday, July 10, 2008
Interest rates: BoE’s next move will be a cut
''...However, the Bank is unlikely to cut rates until the recession really starts to bite - the reason being that until it does there is always a small chance that wage bargainers will demand higher salaries. But as more companies cut jobs, and the chances of wage inflation leaping higher will diminish and the window of opportunity for lower rates may present itself. So expect a rate cut before the end of the year, though sadly it may come too late to prevent much of the pain currently being felt throughout the economy. ...''