BusinessCompany NewsE&Y ITEM Club: No more rate rises this year

E&Y ITEM Club: No more rate rises this year

January interest rate rise brought forward from February, says ITEM Club

The
E&Y ITEM Club
has predicted that the Bank will not raise interest rates
again this year.

It claimed a speech by governer
Mervyn
King
to the Birmingham Chamber of Commerce this week hinted that the
MPC
was not on an ‘aggressive tightening track’.

‘So the case for another immediate rise in rates is certainly not as solid as
the markets have predicted. Ernst & Young ITEM Club is of the view that the
MPC probably won’t raise rates again this year,’ the club said.

Professor Peter Spencer, chief economic advisor to the Ernst & Young ITEM
Club, says that according to the ‘flavour’ of the minutes of MPC meeting, the
narrow decision to raise interest rates in January ‘represented the February
decision brought forward, rather than an extra move to tighten policy’.

Further reading:

ITEM club lifts economic predictions

E&Y warns on tax rises

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