The CPI experienced a small rise recently from 3.4% to 3.5%, however, this is significantly higher than the government’s target rate of 2%. This prompted some speculation that the Bank of England monetary policy committee (MPC) might raise interest rates in an attempt to curb inflation.
UK economists and financial experts are doubtful there will be sufficient improvement in the UK economy to enable the MPC to raise interest rates before the end of 2013 at the earliest.
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Chief economist at Nationwide building society, Robert Gardner, said the economic date was too volatile to enable the MPC to gauge the strength of the economy accurately. This volatility would be increased further in 2012 with the Olympics and the diamond jubilee.
April 27, 2012 at 1:43 am | Sell House Fast |
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