UK: MPC UNDER PRESSURE TO LEAVE RATES UNCHANGED
Article Abstract:
The UK's Monetary Policy Committee is expected to leave interest rates unchanged at 6% when it meets on 6th July. Reports on manufacturing, services and high street sales provide evidence that growth is slowing fast enough to prevent a rise in the cost of borrowing. Dun & Bradstreet says the number of business failures has fallen in the second quarter. Nationally failures are nearly 5% lower in the six months to June. House prices are easing according to the Halifax and Nationwide. Meanwhile the MSF union wants the MPC to take manufacturing and employment into account when setting rates. Since the two years that MPC has operated some 240,000 manufacturing jobs have been lost and the 2.5% inflation target has been undershot for 15 months.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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UK: INFLATION UNDER PRESSURE
Article Abstract:
Windfall bonuses of up to GB[pound] 100,000 for over 1.6mn policyholders with Scottish Widows could spark a wave of consumer spending and put pressure on inflation, warns the Centre for Economics & Business Research (CEBR). The payouts follow the acquisition of Scottish Widows by Lloyds TSB. Interest rates could peak at 6.75%-7%, the CEBR warns, compared to 6% at present. The Bank of England believes the windfalls will have less impact than during the previous wave of demutualisation. However, it warns that consumer spending growth will need to fall from the current 4% per year if inflation is to be kept under control.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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The Fed is right to be relaxed about inflation
Article Abstract:
It is right that the US Federal Reserve is not very concerned about inflation. Indeed, further short-term weakness in the US economy should make it even less necessary to worry about inflation.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2001
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