The Great Debate UK
-Jane Foley is research director at Forex.com. The opinions expressed are her own. -
Bank of England Governor Mervyn King’s speech this week was well timed insofar as it has nipped in the bud a growing fear that inflation in the UK could be lurching higher.
King maintains that the present rise in the CPI is due to temporary factors. As yet there is nothing in the rhetoric of King or in the minutes of Monetary Policy Committee meetings to suggest that the Bank is preparing to push interest rates higher.
As a consequence, there is still every reason to suspect that the Bank will be keeping rates on hold at least until the third quarter.
- Mark Bolsom is Head of the UK Trading desk at Travelex, the world’s largest non-bank foreign exchange and international payments provider. The opinions expressed are his own. -
The rise in November’s CPI figure was larger than expected, but not a total surprise and markets have largely ignored the data.