Tuesday, January 06, 2004
Rate rise gets closer
Posted by David Smith at 12:01 PM
Category: Thoughts and responses

An upbeat retailing survey from the CBI, together with another strong service sector survey from the CIPS (Chartered Institute of Purchasing and Supply) - to add to recent strong readings from construction and services - have hardened expectations of a repo rate rise from the Bank of England. The likelihood is still that the monetary policy committee will hold rates at 3.75% on Thursday but a February rate hike will be hard to avoid.