Amy Winehouse Andy Dick Angelina Jolie Anna Nicole Smith AOL Apple Architecture Art Ashlee Simpson Ashley Greene Auto Cars Avril Lavigne Ayu Oktasari Bai Ling Bank of America Barack Obama Beauty and Style Beauty-Style Bernanke Beyonce Bing Bobby Brown Brad Pitt Britney Spears Brittany Murphy Brooke Hogan Business Ideas Business News Calum Best Car News Car Photos Car Reviews Car Videos Carmen Electra Carrie Prejean Casey Johnson Celebrity Celebrity Nails Cheryl Cole China Chopper Lane Splitter Chris Rowe Christina Aguilera Christina Hendricks Cindy Crawford Clinton Clip COMEDY Coming Soon Comment faire un Avion en papier Companies Courtney Love Credit Cards Dalene Kurtis Daniel Baldwin Daniel Mica David Beckham David Hasselhoff Deborah Caprioglio DietFitness Drawing & Coloring Earthquake Economy Eirik Solheim Entertainment Eva Mendes Facebook Facebook-Games Farmville Fastion Forex Funny Game Game Info Game News General Motors Gold Golden Globes Haiti Halle Berry Heather Mills Heidi Fleiss Holly Madison Hot Girls Hot News Hot Women How To How to Make How To Read A Forex Chart HOW TOs Insurance International Investing Ipad Iphone Isaiah Washington Jamie Lynn Spears Jenna Jameson Jennifer Hawkins Jennifer Hudson Jesse Metcalfe Jessica Sierra Jessica Simpson Jobs Jocelyn Wildenstein Joe Weisenthal Jonathan Rhys Meyers Kat Dennings Kate Moss Kate Winslet Katie Price Katie Rees Katy Perry Keeley Hazell Keith Richards Kelly Brook Kelly Clarkson Kendra Wilkinson Kiefer Sutherland Kim Kardashian Kirsten Duns Kiss Style KT Tunstall Laetitia Casta Lauryn Hill Leah Marville Leona Lewis Leonardo DiCaprio lesbian Lesbian-Questions Lil Kim Lily Allen Lindsay Lohan Liz Pulliam Weston Loan Centre Louis Navellier Lynda Carter Make Money Mariah Carey Marisa Miller Mary Kate Olsen Mayim Bialik Megan Fox Mel Gibson Michael Jackson Michael Vick Michelle Obama Michelle Rodriguez Miley Cyrus Mischa Barton Miss World Mobile and Internet Molly Sims Movie Info Movies Mutual Funds Nadia Fazlini Sharip Nail Art Tutorial Nail Samples Nails Naomi Campbell News Nicolas Cage Nicole Polizzi Nicole Richie O.J. Simpson Oirigami Useful Origami Origami Airplane Origami Animal Origami Animal Easy Origami Animal's Face Origami Boat Origami Box Origami Flowers Origami Useful Osama Bin Laden Owen Wilson Pamela Anderson Paper Airplane Paris Hilton Paula Abdul Paula Sladewski Personal Finance Pete Doherty Pete Wentz Play Game Online Police Porsche Quotes about Life Rachel Zoe Real Estate Rihanna Roseanne Bar Sara Barelles Scandal Sean Young Sexual Health Shakira Shannon Elizabeth Sharon Stone Shocking Sienna Miller Star Stocks Strange Story Stupid Celebries Susan Boyle Taiwan Tamil Tiger Tara Reid Teens Tiger Woods Tila Tequila Today's Big story Tom Cruise Tom Sizemore Top Game Top Video Toyota Trading Trailers Travel Twilight Vanessa Hudgens Victoria Beckham Video Women Women-Family Women-Health Women'sHeath World Trade Center

Prediction of wait and see policy from MPC (Monetary Policy Committee)

4:47 AM
Prediction of wait and see policy from MPC

THE Bank of England is expected to keep its efforts to boost the money supply on hold this week despite recent feeble economic growth.

Policymakers are expected to freeze quantitative easing at £200bn, while interest rates will also be kept at their record low of 0.5% in their latest decision, due on Thursday.

But the members of the Bank’s Monetary Policy Committee (MPC) are likely to be under intense pressure in the wake of recent unwelcome data.

The committee, which will have access to the in-depth economic predictions of the quarterly inflation report ahead of its publication later in February, is likely to dwell on recent official estimates on gross domestic product (GDP) showing fragile UK growth.

News that the economy left recession in the final three months of last year was greeted with disappointment, as the 0.1% expansion in output was far less than the 0.4% expected by analysts.

Output slumped 4.8% last year – the biggest annual drop since 1949 – while the economy has contracted 6% since the recession began in the second quarter of 2008. A bigger-than-expected spike in inflation in December will also test rate-setters’ resolve.

Consumer Prices Index (CPI) inflation rose to 2.9%, compared with just 1.9% in November, prompting fears over early rate hikes.

The surge – due to unchanged VAT in the month compared with a year earlier, when the temporary cut to 15% to help the economy came in – was the biggest ever annual rise for a single month.

But rate-setters predict inflation will be subdued over the long term by the degree of spare capacity in the economy.

Philip Shaw, of Investec Securities, predicted the second estimate of UK growth could show an expansion, amid more positive survey data and recent falls in unemployment.

He said inflation has been consistently above the Bank’s predictions in the past year.

He said: “The MPC will most likely be in wait-and-see mode for a while. Our central case is that the committee will begin to lift rates from mid-year in response to increasing signs that the recovery is becoming self-sustaining and that the major downside risks to activity are disappearing.”

Allan Monks, of JP Morgan, said he expects rates to start rising in August, while the MPC is predicted to decide on “keeping the door open” to more quantitative easing should growth continue to undershoot expectations.

David Kern, chief economist at the British Chambers of Commerce (BCC), said it was “premature” to start reducing the Bank’s money-boosting measures and also too early to raise interest rates.

“It would be dangerous and unwise to start tightening policy in the belief that the preliminary GDP estimate will be revised upwards,” he said.

“We know that the UK recovery is weak and fragile, so the main policy priority must be to avoid a double-dip recession.”


Post a Comment


Author Name

Xin chào mọi người

Contact Form


Email *

Message *

Powered by Blogger.