Thursday, June 07, 2007

Are interest rates set to rise in the UK?

The Monetary Policy Committee of the Bank of England is due to announce if interest rates are to rise again tomorrow.

It should be said that pundits don't think that interest rates will rise tomorrow, but they do think that they will rise again before the end of the year. (See the BBC here)

The issue that rears its ugly head though is growth in the business sector which seems to be taking a bit of a knock. Since the European bank raised the Euro zone interest rates to 4% yesterday and following on from US interest rate rises the equity (share markets) have been taking a bit of a hit. (See the FT here).

There is no sign of unavoidable doom, but there is a need for some deft economic management.

Lets hope the economy hangs together.

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