Interest rate rises likely, says Bank of England chief economist

[xchrom]

http://www.guardian.co.uk/business/2011/may/21/interest-rate-rises-likely-economist

The Bank of England's chief economist has warned families to prepare for a squeeze on living standards, with interest rates likely to rise over the next two years.

Spencer Dale expressed concern about the strength of any economic recovery – a sentiment echoed by the business secretary, Vince Cable, who has warned that Britain's economic model is broken.

Dale is one of nine members of the Bank's monetary policy committee and voted earlier this month for a 0.25% rise in rates. But six members voted to hold rates at their historic low level of 0.5%.

The bank made the decision before official figures showed the consumer prices index, the government's preferred measure of inflation, had risen to 4.5% in April, the highest level in more than two years.





:eyes:

[louis-t]

1. I don't let banksters tell me about interest rates

and I don't let 'oil analysts' tell me about oil prices. Every 'oil analyst' said "IT'S GONNA BE $6 A GALLON BY JUNE!1!!1!". Same as 2008. Every commercial for mortgages says "RATES ARE GOING UP SO BUY NOW!1!!1". Then the rates go down.

[muriel_volestrangler]

2. Except this 'bankster' does actually set interest rates

He is one of the committee that sets the UK base rate.

[jwirr]

3. O goodie, some more thatcherisms. I will not help. It did not then

except for the rich of course.