Quarter point rate rise expected - papers 5th August

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A MAJORITY of economists believe the Bank of England's interest rate decision, which is to be revealed later today, is "pretty much baked in the cake".

The Scotsman says all nine members of its ‘shadow monetary policy committee’ have all refuted the likelihood of a 0.5% rise in rates this month, arguing a quarter percentage basis point increase followed by another in September is more likely. Douglas McWilliams was quoted by the Scotsman as saying there was a "one in five chance" of a 50 percentage basis point increase, and Tom Vosa added a 0.25% hike was "pretty much baked in the cake." He said: "The risk the markets will be looking for is if in the subsequent minutes [of the MPC meeting] its suggests back-to-back quarter point ris...

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