Turmoil forces MPC's hand - papers 6 October

The dramatic financial turmoil that has wrought havoc across global markets has, at the same time, drastically altered the outlook for interest rates. For most of this year, the MPC has wrestled with an intractable quandary over rates as its nine members have been wrenched in opposite directions by the conflicting pressure from surging inflation and faltering economic growth. Now, at last, the Bank's dilemma is beginning to resolve itself. Steep increases in prices remain a headache for the MPC, but the rapid deterioration in the economic outlook has shifted the terms of the rate debate...