Summary
While the Bank of England's widely expected quarter point cut in interest rates to five per cent yesterday was widely welcomed, the Bank spelled out its choice between fuelling inflation and permitting a damaging economic slowdown.
It held out the prospect of inflation slowing this year, even if commodity prices remain at present levels.See the full content of this document
Extract
Bank Spells Out Reasons for Cut ; Rates
In the meantime economists fear it could rise from the present 2.5 per cent to 3.1 per cent, a level at which Mervyn King, the Bank's governor, would have to write to chancellor...
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