IMF cautions BOE against any further rate cuts
Posted On 2008/05/24 at at 11:01 PM by let's profitIMF Cautions BOE Against Any Further Rate Cuts
(CEP News) - In its annual report on the UK economy, the IMF urged the BOE to tighten up its interest rate policy or it will have no choice but to raise interest rates.The IMF sees no scope for further cuts and stated that if inflation begins to drive up wages, policy-makers should not hesitate to raise rates.The United Kingdom's headline CPI is at 3%, above its current target rate of 2%. High commodity prices and a weak sterling have placed upward pressure on prices. The IMF stated, "We see no scope for further near-term monetary easing absent assurances of continued wage moderation, fiscal policy that is tighter than planned, or signs that house price and credit developments are significantly curbing domestic demand." The IMF expects the UK economy to grow 1.75% in 2008 and continue at the same rate into 2009.
By Steve Stecyk, sstecyk@economicnews.ca, edited by Cristina Markham, cmarkham@economicnews.ca
(CEP News) - In its annual report on the UK economy, the IMF urged the BOE to tighten up its interest rate policy or it will have no choice but to raise interest rates.The IMF sees no scope for further cuts and stated that if inflation begins to drive up wages, policy-makers should not hesitate to raise rates.The United Kingdom's headline CPI is at 3%, above its current target rate of 2%. High commodity prices and a weak sterling have placed upward pressure on prices. The IMF stated, "We see no scope for further near-term monetary easing absent assurances of continued wage moderation, fiscal policy that is tighter than planned, or signs that house price and credit developments are significantly curbing domestic demand." The IMF expects the UK economy to grow 1.75% in 2008 and continue at the same rate into 2009.
By Steve Stecyk, sstecyk@economicnews.ca, edited by Cristina Markham, cmarkham@economicnews.ca
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