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Blanchflower admits MPC use IR to boom housing! |
| May 28th, 2007 under General. [ Comments: none ]
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Source: Reuters.com
Cut Quote:
“But if the data aren’t supportive and we see the labour market is weak, there’s an effect on consumption, and the housing market is slow, then we’ll act,” he added. - Editor Note:Why not act when housing went up by 300% then?
LONDON (Reuters) - Another rise in interest rates is not a foregone conclusion, a traditionally dovish member of the Bank of England’s rate-setting Monetary Policy Committee, David Blanchflower, was quoted on Sunday as saying.
Some BoE policy makers considered raising interest rates by half a percentage point in May before all nine settled for a quarter point increase to 5.5 percent.
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May Rate Rise Was Unanimous |
| May 23rd, 2007 under General. [ Comments: none ]
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Source: http://news.bbc.co.uk/2/hi/business/6682971.stm
The Bank of England’s decision to raise interest rates by a quarter of a point in May was unanimous, minutes of the rate-setting meeting show.
Lingering inflation risks prompted the unanimous decision to hike interest rates to 5.5% - taking the cost of borrowing to six-year highs this month.
But some members of the Monetary Policy Committee (MPC) had considered voting for a half-point rise, the minutes say.
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M4, or broad money, up by 13.3 % |
| May 22nd, 2007 under General. [ Comments: 1 ]
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M4, or broad money, grew by 13.3 per cent in the year to April, up from 12.8 per cent the previous month. The Bank tracks the money supply as one indicator among several of the underlying scope for inflation in the economy. These worrying figures seem to dash any hopes that rates will not rise above 5.5 per cent.
Jonathan Loynes, of Capital Economics, said: “April’s figures would seem to add to the growing likelihood that interest rates will rise as far as 6 per cent.”
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Bank of England attacked over interest rate mistakes |
| May 17th, 2007 under General. [ Comments: none ]
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Source:
Telegraph
Bank attacked over rate mistakes
By Tom Stevenson
Last Updated: 4:05am BST 17/05/2007
# Mortgages likely to rise again
The Bank of England will be forced to raise interest rates higher for longer because of its caution in fighting resurgent inflation, Britain’s biggest investor has warned. Legal & General said the base rate would need to rise to 6pc to slow the economy because the Bank has been too slow to raise rates over the past year.
Bank Governor Mervyn King; the Bank of England will be forced to raise interest rates higher for longer warns James Carrick
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CPI Inflation slows to 2.8% in April |
| May 15th, 2007 under General. [ Comments: none ]
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Source: http://news.bbc.co.uk/2/hi/business/6656899.stm
The UK’s rate of inflation slowed in April after energy bills were cut, official figures have shown.
Consumer price inflation fell to 2.8% last month, against 3.1% in March, the Office for National Statistics said.
The Retail Prices Index, an inflation measure often used in pay bargaining, fell to 4.5% in April from 4.8%.
In an effort to slow prices, the Bank of England has lifted interest rates to their highest level in six years and many analysts expect more rate rises.
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Bank Of England raise interest rates to 5.5% |
| May 11th, 2007 under General. [ Comments: 1 ]
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The Bank of England raised interest rates by .25% point to 5.5% on Thursday. The move had been widely expected, with some even expecting a .5% rise. This takes the base rate to the highest in 6 years, but still below the long term average.
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Manufacturers raise prices at strong pace |
| May 2nd, 2007 under General. [ Comments: none ]
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Source: http://www.ft.com/cms/s/35a83408-f7b6-11db-baa1-000b5df10621.html
New orders and higher raw material costs encouraged manufacturers to raise prices at a near record pace in April, a move that cemented expectations for a further rise in interest rates.
The latest survey from the Chartered Institute of Purchasing and Supply and the Royal Bank of Scotland showed an index of manufacturing activity at 53.9 last month, compared with 54.2 in March.
Manufacturing output expanded at its fastest since last September, with most sectors witnessing a good performance. Consumer goods were particularly strong.
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