How high do UK interest rates need to rise?
Article Abstract:
The UK government has given the Bank of England responsibility for setting interest rates which will keep inflation to within one percentage point of 2.5%. The issues which the Bank of England must take into account in 1997 include the strength of the pound, the possible need to dampen consumer demand fuelled by windfall receipts from the building societies, and the need to slow down the growing economy by 1998 in a manner gentle enough to avoid a significant rise in unemployment. Evidence suggests that Aug 1997 interest rates are at approximately the correct level to achieve the Bank's aims.
Publication Name: Economic Outlook
Subject: Economics
ISSN: 0140-489X
Year: 1997
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Boom time for British manufacturing investment
Article Abstract:
UK investment in manufacturing industry will be constrained by a weak housing market and controls of government spending. Investment looks set to grow from 1995, but not by a large amount compared with similar stages in previous business cycles. Consumption is constrained through UK fiscal policy which should create leeway for more investment. Investment has been delayed despite an improvement in profitability and output. Investment may slow down by the year 2000 when another recession may occur.
Publication Name: Economic Outlook
Subject: Economics
ISSN: 0140-489X
Year: 1995
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UK consumer spending: prospects for the late 1990s
Article Abstract:
United Kingdom consumer spending has grown since 1992 and helped boost UK economic growth as a whole. Real personal disposable income, the personal savings ratio and interest rates all affect consumption. The personal savings ratio has not dropped in the 1990s as it did in the late 1980s, though this could be changing in 1997. House prices are not rising as much in 1997, and monetary policy is tighter than in the late 1980s. Consumption growth looks set to weaken in 1999 and 2000.
Publication Name: Economic Outlook
Subject: Economics
ISSN: 0140-489X
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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