Retail price inflation in September made a surprising jump to 2.1% from 1.9% on an annualised basis ...
Retail price inflation in September made a surprising jump to 2.1% from 1.9% on an annualised basis according to new government figures. This has lead to renewed speculation about what the Bank of England's Monetary Policy Committee will do with interest rates when it next meets.
Investors will not know until next Wednesday how close the MPC was to voting for a lower base rate at its last meeting at the beginning of October.
Economists speculated after that meeting that rates could yet come down if economic news from the US got worse.
However, since then a series of positive quarterly results from major US companies such as General Electric have indicated that corporate earnings could be improving, suggesting the threat of a double-dip recession there are receding.
The BoE is said to be unlikely to raise interest rates before the US does, but the MPC may feel it has no choice in order to remain within inflation guidelines - currently set at a maximum of 2.5% annually.
Following the latest retail price index inflation figures, most betting is that rates will remain unchanged following November's MPC meeting.
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