Summary
THE real question for the Bank of England is whether its touch on the brakes will slow the housing and consumption locomotive. In justifying a quarter-point rise in base rates to 4pc, the Bank scatters its reasons far and wide including the world recovery and robust business surveys.
But at the core of its reasoning is 'resilient' household spending and borrowing and a strong housing market. Mervyn King and the Monetary Policy Committee are determined to head off an unsustainable boom. This is despite the fact that inflation is comfortably below the 2pc target. Barring shocks, inflation is likely to remain below target two years from now.See the full content of this document
Extract
Bank Flashes Warning Signal ; City Comment
Mortgage rates are comfortably low for those of us who remember the darkest days of ...
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