Business Advice for all UK firms from starting a business to flotation
Interest rates 'will rise soon'
Britain will raise interest rates sooner than expected and definitely before the end of the year, according to the world's leading economic think-tank.
The Organisation for Economic Co-operation and Development (OECD) said that with inflation still above the Bank of England's 2% target the rise in rates is unavoidable.
Rates will need to be as high as 3.5% by the end of 2011, the OECD said - seven times the current 0.5% at which the Bank has maintained its base rate since March of last year.
"The gradual drift up of some measures of inflation expectations implies a need to increase interest rates earlier than previously thought and no later than the last quarter of 2010," said the think-tank.
The OECD's warning is the strongest suggestion yet that inflation - which hit 3.7% in April - may not come back within the Bank's target range as quickly as the Monetary Policy Committee has suggested.
Post Date: May 27th, 2010
The Organisation for Economic Co-operation and Development (OECD) said that with inflation still above the Bank of England's 2% target the rise in rates is unavoidable.
Rates will need to be as high as 3.5% by the end of 2011, the OECD said - seven times the current 0.5% at which the Bank has maintained its base rate since March of last year.
"The gradual drift up of some measures of inflation expectations implies a need to increase interest rates earlier than previously thought and no later than the last quarter of 2010," said the think-tank.
The OECD's warning is the strongest suggestion yet that inflation - which hit 3.7% in April - may not come back within the Bank's target range as quickly as the Monetary Policy Committee has suggested.
»
- Login or register to post comments
- Printer friendly version
Post Date: May 27th, 2010
.
.
Accounting Advice | Banking & Finance | Business Continuity | Entrepreneurs | HR/Payroll Advice Insurance Advice | International Trade
Internet Advice I.T. Advice | Legal Advice | Marketing Advice | Office Management | Pensions & Benefits Property/Relocation | Recruitment Advice
Starting a Business | Telecommunications | Training/Education Travel Advice | Utilities Advice | Vehicles
copyright © 1998-2018 Newbusiness.
Homepage | Terms & Conditions | Copyright & Trademarks | Privacy Policy | Sitemail & Forum Policy | Sitemap