The Bank of England will say this week that a 0.25% rise in base rates to 6.25% last week has put Britain broadly on track to achieve the government’s 2.5% inflation target. Also, it doesn’t see the need for another rate rise in the foreseeable future.
But the Bank of England will not use its new powers to counter the strength of Sterling. In addition, there are fears that the rate rise could hurt the fragile housing market recovery.
- The Sunday Times Business 11/05/97 page 1
- The Observer Business 11/05/97 page 1
- The Independent on Sunday 11/05/97 page 1
- The Mail on Sunday Financial Mail 11/05/97 page 44
