INTEREST RATES ARE unlikely to move up again despite rising inflation because the Bank of England has been taken by surprise by the pace of falling high street sales, reports The Times
The paper quotes governor Mervyn King as stating there was no doubt “the speed at which the slowdown in retail spending occurred did come as a bit of a surprise”. THE DAILY TELEGRAPH says economists are firm in their belief the Bank will not raise rates despite stating the rate of inflation is set to go through its 2% target in the current quarter. Also on the horizon are reduced economic growth rates, with the Bank having cut its forecast to a rate of 2.5% as a result of the slowdown in spending. This is well below the 3% rate of economic growth currently predicted by the Treasury, t...
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