BoE defends rates stance - papers 2 July

The Daily Telegrah says the comments came as new data showed the UK manufacturing sector stuttered last month, threatening a slowdown the UK economic growth. However, Lomax points out that the UK had the lowest amount of “slack” in its economy compared to all other major economies, which is why the Bank had no choice but to reverse the credit cycle earlier than elsewhere. While the BoE’s first increase was applied in November last year, the first increase in US interest rates occurred just this week, when the Federal Reserve upped the key rate by 0.25% to 1.25%. The European Central B...