The Governor of the Bank of England dampened hopes of a cut in interest rates as soon as next week when he issued a renewed warning yesterday that Britain's central bank must take a hard line to ensure that present high levels of inflation are quelled, The Times reports.
Mervyn King raised new question marks over the Bank's readiness to cut rates quickly, and over any further moves this year, as he again underlined the anxieties of its Monetary Policy Committee (MPC) that inflationary pressures may prove persistent and hard to eradicate. However, the Governor, speaking in Jerusalem, still left open the possibility of an April rate cut when he emphasised that although some slowdown in the economy was needed to curb inflation, “we cannot allow the economy to slow too sharply”. This and his comment last week that the credit crunch had left the Bank more pred...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
