United Kingdom
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Thursday, 21 August 2008
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| View All Articles About 'England' |
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| 92. |
Inflation expectations rise in Nov
Expectations of future inflation have risen to match their highest level since comparable records began more than six years ago, a survey published by the Bank of England showed on Thursday.
14 Dec 2006 |
| 93. |
Bank holds rates steady at 5 percent
The Bank of England kept interest rates unchanged on Thursday and economists are divided over whether two hikes in borrowing costs in the past four months have done enough to curb inflation.
Economists polled by Reuters last week had unanimously forecast the bank would leave rates at 5 percent and market reaction was minimal.
The outlook, however, is less clear and much will depend on the level of wage settlements in the crucial New Year pay round.
"Today's decision was no surprise but people should not be fooled into thinking interest rates have definitely peaked," said Graeme Leach, chief economist at the Institute of Directors. "It is still a 50:50 call as to whether interest rates go up again in the New Year."
The economy has given out mixed signals in recent weeks. The housing market and services sector continue to accelerate but manufacturing activity and consumer spending appear to be slowing.
Annual house price inflation hit a 20-month high in November, according to Halifax data, while the country's services sector grew at its fastest pace last month in almost three years.
RETAIL GLOOM
Manufacturers and retailers, however, look to be having a tougher time. Data on Wednesday showed industrial output contracted in October for the first time in over a year and anecdotal evidence suggests consumers are tightening the purse strings.
Shares in Woolworths fell sharply this week when it became the first high street store to warn on Christmas profits and the British Retail Consortium said the value of sales grew last month at the slowest annual rate since March.
The pound's rise to a six-year high in trade-weighted terms has also entered the monetary policy debate, by dampening import price inflation and making exports more expensive.
"There is clear weakness in manufacturing and a murky outlook for retail sales which may make the Bank think twice before raising rates again," said Brian Hilliard, chief economist at Societe Generale. "The exchange rate is also a factor and yet to be reflected in the data."
The Bank remains upbeat on the growth outlook and predicts the economy will expand 3 percent next year. Nevertheless recent comments from the bank's rate-setters have highlighted growing divisions on the policy committee.
Deputy Governor Rachel Lomax, who joined David Blanchflower in opposing last month's rate rise, said lower oil prices and a stronger pound have improved the inflation outlook. Fellow committee members Charles Bean and John Gieve, however, have highlighted upside risks to the inflation outlook.
07 Dec 2006 |
| 94. |
Bank unexpectedly voted 7-2 for Nov rate rise
Two of the Bank of England's nine strong Monetary Policy Committee unexpectedly opposed this month's decision to raise interest rates by a quarter point to 5.0 percent.
22 Nov 2006 |
| 95. |
Property sales fell sharply in October
The number of property transactions in England and Wales fell sharply in October to their lowest level in more than a year, tax authority data showed on Tuesday.
22 Nov 2006 |
| 96. |
Bank raises interest rates to 5.0 percent
The Bank of England raised interest rates on Thursday by a quarter point to 5.0 percent, their highest level in 5 years, in order to restrain building inflationary pressures.
09 Nov 2006 |
| 97. |
Bank voted 7 to 2 to hold rates
The two newest members of the Bank of England's Monetary Policy Committee opposed this month's decision to keep interest rates pegged at 4.75 percent, preferring an immediate quarter point increase.
18 Oct 2006 |
| 98. |
BoE holds rates at 4.75 percent
The Bank of England kept interest rates steady at 4.75 percent for the second month running on Thursday, but most economists predict a hike next month.
05 Oct 2006 |
| 99. |
Bank set to hold rates
Hardly anyone expects the Bank of England to raise interest rates this week but markets are still on heightened alert after the central bank caught them on the hop with a quarter point hike in August.
04 Oct 2006 |
| 100. |
Bank deputy mulled September rate rise: FT
Sir John Gieve, deputy governor of the Bank of England, said in a newspaper interview published on Monday he gave serious thought to another rise in interest rates at this month's Monetary Policy Committee Meeting.
25 Sep 2006 |
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