Comments: 6-3 - but three different views


Have these inflation figures and also today's GDP growth figure (0.8% for Q2) changed your view on the interest rate outlook? On 9th July you wrote "the markets take a more aggressive view on UK rates than I do, discounting something like 6.25%".

Posted by Ed at July 20, 2007 03:07 PM

retrospectively, should the MPC have raised the IR by 0.5% steps twice in 4Q 2006, instead of this "death by thousand cuts"?
What is the advantage of acting so slowly if "the risk is on the upside"? If we believe what they say, that means they are risking to have to raise the IRs more overall to achieve an effective control of the inflation.
What do you think?

Posted by Michele at July 20, 2007 04:32 PM

I'll respond to these and some other outstanding questions on Sunday.

Posted by David Smith at July 20, 2007 04:42 PM