Tuesday, March 07, 2006
Interest rates - up or down?
Posted by David Smith at 06:45 PM
Category: Thoughts and responses

On the eve of the Bank of England monetary policy committee's March meeting, the debate is joined. The shadow MPC, perhaps surprisingly, voted 5-4 to cut rates last weekend. On balance market analysts expect the next move to be down, but only very narrowly. The number of economists expecting unchanged rates this year is growing. But what do you think? Join the discussion and vote.


It amazes me that the Shadow MPC have voted 5-4 for a cut. Have they never heard about global pressures? The reason the high street is currently suffering is due partly to most peoples wages going directly to the bank due to debt or housing. What caused this? Well low interest rates causing low borrowing rates. The FED and the ECB are currently factoring in interest rate rises, so if sterling sinks due to not matching, then we will import inflation. As far as I am aware we don't export much, so won't benefit from sterling falling (hence the global pressures).

Posted by: Kev M at March 7, 2006 07:30 PM

well if interest rates go down,UK plc is basically admitting it's in real trouble,even eurozone is hiking rates now with 10% unemployment.

Posted by: ebeneezer good at March 7, 2006 08:38 PM
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