Economics Weekly by Lloyds TSB

Nine months into a cyclical recovery and the debate over UK monetary policy has become increasingly finely balanced. On the one hand, the pick-up in growth and the elevated level of inflation have strengthened the case for a pre-emptive rise in interest rates to start soon. On the other

BoE Inflation Report: King to have the last word, not Sentance

Nine months into a cyclical recovery and the debate over UK monetary policy has become increasingly finely balanced. On the one hand, the pick-up in growth and the elevated level of inflation have strengthened the case for a pre-emptive rise in interest rates to start soon. On the other, the degree of uncertainty about the durability of the recovery and the potential disinflationary forces that could yet emerge have raised the possibility that more, not less, stimulus may be required. So which is it – should sterling markets brace themselves for an impending rise in interest rates; or should they be prepared for a renewed round of policy stimulus to stave off the risk of a double-dip recession?


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