Varying degrees of interest in rate rises

While policymakers raised interest rates in the UK and the eurozone in August, the US Federal Reserve stayed its hand for the first time in two years. The Bank of England's Monetary Policy Committee (MPC) raised UK interest rates by a quarter-point at its August meeting to 4.75% and investors remain convinced there is more to come, pricing in at least one more rate hike by the end of the year. However, some are arguing against this, suggesting the August decision actually reduces the likelihood of further rises (the stitch-in-time argument). Additionally, the elevated level of sterlin...