Tuesday, May 3, 2011
A big hint ahead of Thursdays MPC release
Mervyn King, the governor of the Bank of England, has warned of the â€œsevereâ€ consequences of raising interest rates. Speaking at the European Parliament in Brussels yesterday, King said rate rises would be dangerous given the high debt levels across Europe. King said: â€œThe economic consequences of high-level indebtedness now would become more severe if rates were to rise.â€ The Monetary Policy Committee meets this Thursday to decide whether to keep the bank rate at its historic low of 0.5%.