Bank of England’s interest rates may witness another rise. According to the bank’s quarterly Inflation Report, inflation is expected to rise as much as 2.7%.
August 11, 2006 (Press Release) --
London (www.loans11.co.uk) August 10, 2006: Bank of England’ interest rates may possibly rise further to keep up with the rising inflation. According to BoE’s report, which came a week after the bank unexpectedly raised the interest rate by a quarter percentage point to reach 4.75%, inflation may hit above its 2.0% target to reach up to an estimated 2.7%.
However, the Bank expects a robust economic growth in the near future, but rising energy prices indicate a risk.
The Office for National Statistics revealed in its latest figures that Consumer Price Index (CPI) reached a significant high of 2.5%. Supposedly, rising oil and gas prices account for this drastic hike in CPI. The ONS also figured that against predictions of £6.2bn, the world trade gap narrowed from £6.98bn in May to £6.46bn in June.
BoE Governor Mervyn King said "There remains great uncertainty about future energy prices, especially in the light of political tensions in the Middle East and inflation is likely to be volatile in the coming months."
According to the experts, however, the bank’s predictions for inflation are likely to be true, but due to greater ambiguity it’s unlikely that the BoE’s rates of interest would hike again.
However, the Bank expects a robust economic growth in the near future, but rising energy prices indicate a risk.
The Office for National Statistics revealed in its latest figures that Consumer Price Index (CPI) reached a significant high of 2.5%. Supposedly, rising oil and gas prices account for this drastic hike in CPI. The ONS also figured that against predictions of £6.2bn, the world trade gap narrowed from £6.98bn in May to £6.46bn in June.
BoE Governor Mervyn King said "There remains great uncertainty about future energy prices, especially in the light of political tensions in the Middle East and inflation is likely to be volatile in the coming months."
According to the experts, however, the bank’s predictions for inflation are likely to be true, but due to greater ambiguity it’s unlikely that the BoE’s rates of interest would hike again.
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