INDUSTRY commentators have been largely supportive of today's decision by the Monetary Policy Committee (MPC) to cut interest rates by 0.25pc to 5pc, though warn that more action may be required in the months ahead to combat inflation.
CPI inflation rose to 2.5pc in February, and the MPC said today that it expects a further rise this year, reflecting the continuing impact of higher energy and food prices, as well as the recent depreciation of sterling on import costs. Edward Menashy, chief economist at Charles Stanley, said he supported today's move, though warned that there remains a risk of the CPI breaching 3.1pc limit. He said: "Inflation is akin to viewing the scene through the driver's mirror, you know where you have been. Recession is viewing events directly through the windscreen; you are alerted of what is co...
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