Commenting on the decision, Andrew Smith, KPMG’s chief economist said: ‘Having raised rates in both May and June, the MPC has shied away from a third consecutive increase, but the pause is likely to be brief. Everyone will now pencil in a rise next month.’
Smith said the economy was well on track to beat growth targets and predicted interest rates would hit 5% to 5.5% by the end of the year.
‘Given robust growth, there is an argument that the sooner rates return to their “neutral” level, where they neither stimulate nor depress the economy, the better. A rise in August would leave rates on track to move into the 5 – 5.5% range, estimated by some to be the neutral level, before year-end,’ he added.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements