UK economy: bank on rate warning
Article Abstract:
The Bank of England is likely to warn that UK interest rates may have to rise and Eddie George, governor of the Bank, called for a rise in Aug 1996. Data on inflation released in Oct 1996 is likely to reinforce this call. The UK chancellor, Kenneth Clarke, is likely to seek to maintain interest rates citing a rise in the value of pound sterling as his reason. This is not certain, however since there would be benefits in reaching an agreement with the Bank which may outweigh short term political considerations involved in keeping rates stable.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Low growth damps inflation, says bank
Article Abstract:
The Bank of England is a little more optimistic on UK inflation prospects but emphasises the need to prove to markets that the government is committed to low inflation. The bank sees the chance of inflation being under 2.5% in 1997 as improving due mainly to slower growth rates for the UK economy. There is more uncertainty in assessing factors likely to influence inflation, such as economic growth. The bank's analysts are also uncertain as to how to interpret an increase in the growth of broad money.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Bank cagey on rate cuts
Article Abstract:
UK interest rates have been reduced by the government, and the Bank of England appears to back the reductions. The Bank forecasts an inflation level of less than 2.5% two years from 1996, or below the target set by the government. The Bank emphasizes that it is not seeking further reductions in interest rates. Capacity constraints could lead to inflationary pressure, the Bank argues. The growth of broad money is also speeding up and this could also push up inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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