Summary
Remarks by Mervyn King, Governor of the Bank of England, led to a flurry of speculation yesterday that the Bank is all-but certain to raise interest rates again this summer to 5.75 per cent even though inflation is set to fall sharply.
So sharply that over the next 12 months it will go well below target before rising gently to around the Bank's two per cent bullseye in the winter of 2008/09.See the full content of this document
Extract
Flurry of Speculation Over Second Rate Rise ; Inflation
Presenting the Bank's quarterly Inflation Report, Mr King pointed out that the chart illustrating this was based on money market expectations, which factor in one more quarter-...
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