Thursday, October 07, 2010
Bank unmoved by Halifax shocker
Posted by David Smith at 12:15 PM
Category: Thoughts and responses

The Bank of England's monetary policy committee left Bank rate on hold at 0.5% and declined to add to the existing 200 billion of quantitative easing, as expected. There will have been a split vote, the question is whether it was a two-way or a three-way split.

The Bank held in spite of the release of figures from the Halifax showing a record 3.6% drop in house prices in September. Even the Halifax appeared embarrassed by the figures, which look like an aberration.

There was more predictable news from industry, with both manufacturing and overall industrial production rising by 0.3% in August. The 12-month rises, 6% and 4.2% respectively, look impressive. More here.