Slow recovery stalls rate rise by Bank of England

UK notes with two-year yields have moved slightly amid speculation the economy is not growing fast enough to warrant the Bank of England to raise interest rates in the near future. As of 29 April, the 5% note maturing in June 2004 fell 0.02%, raising its yield one basis point to 4.75%. Mike Lenhoff, chief global strategist at Gerrard, says the Deputy Governor of the Bank of England, who is generally viewed to be on the hawkish side of the debate concerning rate rises, has indicated that while there is a clear need for the economy to rebalance, it is still too soon to be confident that ...