Mpc Considered Higher Rates Hike

The ScotsmanMay 20, 2004

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Summary


ECONOMISTS began to fret yesterday that interest rates will rise even higher than 5.25 per cent, after the Bank of England said it had considered shocking consumers with a 50 basis point hike in interest rates this month.

The minutes of the meeting of the Bank's monetary policy committee on 5-6 May, at which it lifted its base rate by 25 basis points to 4.25 per cent, showed the verdict was unanimous. What stunned the City was the revelation that the MPC gave serious consideration to lifting rates to 4.5 per cent.

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Extract


Mpc Considered Higher Rates Hike

Market interest rate expectations rose by a sharp 13 basis points after the news, pricing in ...

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