A small rate rise soon could be preferable to larger increases later - a case of “a stitch in time saves nine”. However, subdued money growth and strong competition should help keep inflation down. The Bank of England’s MPC left UK interest rates at 3.75% today, as expected, but the 6-3 split was more hawkish. … Continue reading Bank of England edges closer to an autumn hike
Tag: credibility
Bank of England falls further behind in race to tame inflation
The Bank of England’s Monetary Policy Committee (MPC) has raised interest rates by just a quarter point, to 1.25 per cent. This was the fifth increase in as many meetings, but still leaves rates near historic lows. In my view, this was a mistake. This decision is hard to square with April’s consumer price inflation … Continue reading Bank of England falls further behind in race to tame inflation
Plain-speaking Economics 