Networking in Surrey

MPC member calls for immediate rate rise

Monetary Policy Committee (MPC) member Martin Weale has said interest rates must move now in order to contain inflation and prevent sharper, more damaging increases in the future.
Speaking to BBC Radio 4, Weale said raising base rate would protect the country from a "squeeze" later on and reduce consumers' inflation expectations back towards 2%.
However, Weale said that raising rates would not mean inflation will fall quickly, with the Bank of England forecasting that CPI could hit 5% after rising to 4% in January.
He said: "I certainly wouldn't expect raising interest rates in the short term to bring the inflation rate rapidly back to target."

Weale, who joined the MPC in 2010, warned that the recent rise in inflation could affect people's expectations of future inflation and make price rises self-perpetuating.

He said: "If businesses and people bargaining for wages expect high rates of inflation, then there's a risk that they may build those expectations into their current behaviour."
Weale joined MPC hawk Andrew Sentance in January in calling for Bank base rate to be increased to 0.75%.
---------------------------------------
For more information about the current topics in the mortgage market, check out my blog, Mark's Mortgage Blog at http://merrivale47-mortgagemonkey.blogspot.com/



Views: 9

Add a Comment

You need to be a member of Networking in Surrey to add comments!

Join Networking in Surrey

Member Sponsors (Links)

These NiS MEMBERS help us keep NiS free for you! Click the ads for info and offers...

Meet  Elizabeth Turner on NiSGold BNI (SME Awards Networking Group of the Year Winner!) is the only BNI networking group in Surrey that meet every week online, with an optional social face to face every month - please click the ad to visit us for free!

GRAB A FREEBIE.(or two!)Click the ad to check out our Network4Free page for dozens of terrific freebies, many of them transcending the Surrey borders.

Meet Tara Jayne Maynard
Come as a Visitor to sample our BNI Woking and Pyrford in-person meetings and discover how very rewarding networking can be for you… please click on the ad and apply to join us as a Visitor to these vibrant, fast-growing groups!

Meet John Gower on NiS...Local Networking Works! Start boosting your business TODAY... Please click the ad for details ADVERTISE HERE! Become a Sponsor and promote your business by taking an ad  - seen by over 2,400 Members, 1,500 unique visitors  with 6,000+ pageviews every month...

"Thanks for getting Google on my side! It's  so nice when you can see a return on your investment."
Emma Selby Farnham Hub

Sean Usher Interviews Keith Grover Part 1

WATCH A VIDEO of Keith telling Sean Usher all about NiS

© 2024   Created by Keith Grover, NiS Founder.   Powered by

Badges  |  Report an Issue  |  Terms of Service