The Great Debate UK

Little chance of a rate hike until at least Q3


cr_mega_503_JaneFoley.JPG-Jane Foley is research director at 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.

Will inflation soar when QE is withdrawn?


MarkBolsom - 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.

Deflation? It’s inflation you need to watch


– David Kuo is a director at the financial Web site The Motley Fool. The views expressed are his own. –

david-kuo_motley-foolWhat are consumers supposed to make of the latest inflation numbers? Do we have inflation, deflation or a bit of stagflation?