Interest rates could start to rise in two months' time, says Henderson New Star's Simon Ward.
Signs of an economic recovery coupled with sharply rising inflation could lead the Bank of England's monetary policy committee (MPC) to up rates early this year, an analysis by Henderson New Star suggests. The company's MPC-ometer predicts the Bank will shift to a "tightening bias" in early 2010, with expectations QE will end and members will move to normalise official rates in February. "With preliminary fourth-quarter GDP [economic growth] figures released in late January likely to confirm a recovery, and inflation rising sharply, the model suggests the Bank Rate could be increased ...
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