Interest rates not certain to drop - Tilney

In the wake of the decision by the Monetary Policy Committee (MPC) to keep rates static, Bickley asserted that while it is unlikely that interest rates will rise in the current conditions, had the financial crisis not occurred they almost certainly would have. Bickley reasoned: “The UK economy has a positive output gap which means it is still operating above its potential growth rate and there is no sign as yet that this is changing.” The economics expert posed the question of whether the real economy will be negatively impacted by the financial markets or not. He warned: “In the end, th...