Comments: Unchanged at 5.75%

The Bank is presumably also having to second guess the impact of the credit squeeze. With money markets pricing risk higher and inter bank lending rates rising it might appear that some of the bank's counter inflationary work is going to be done for it - but equally it means that borrowers can't breathe any great sigh of relief. One might get the impression that the Bank's job has simply grown more difficult - there's yet another significant factor to be accounted for when it makes its inflation targeting calculations

Posted by Jonathan at September 6, 2007 02:53 PM