Rates held in spite of price inflation fears

first_img Share whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeBewadaHusband Divorced His Wife After Looking Closer At This PhotoBewadaUndovirimi.com14 Efficient Arm Workouts To Build Might & Muscle – Virimivirimi.comUndoAmoMediaMan Leaves Wife For Her Sister, Her Revenge Is BrilliantAmoMediaUndoadvisor15 Plants that Repel Mosquitoes NaturallyadvisorUndocutenova.comTake a Peek at 10 of the Most Expensive Houses in the Worldcutenova.comUndoHealth.recetasgetHeart Attack Early Warning Signs and SymptomsHealth.recetasgetUndoDinnerZUTop 5 Foods That Help Lose Weight FastDinnerZUUndo5log – Livinguard®This mask has been sold out in Germany 5 days after the government has tighten up5log – Livinguard®UndoBuzzDestination7 Types of Men Who Are Not Made For RelationshipsBuzzDestinationUndo Thursday 13 January 2011 7:57 pm whatsapp KCS-content Show Comments ▼center_img Tags: NULL INTEREST rates were held for the UK and the Eurozone yesterday, despite rising inflation in both areas.Historically low rates were maintained by the Bank of England (0.5 per cent) and the European Central Bank (ECB), which kept Euro area rates at one per cent.Inflation in the UK rose to 3.3 per cent in November, and is forecast to hit four per cent early this year – double the Bank’s target rate.Price increases for December are due to be revealed by the Bank on Tuesday next week.In the Eurozone consumer price index (CPI) inflation has risen to 2.2 per cent, surpassing the ECB’s target of just below two per cent.UK interest rates have been at 0.5 per cent since March 2009, yet there are signs that the monetary policy committee (MPC) may begin tightening soon.Minutes for December’s meeting revealed a more hawkish tone among the committee. Andrew Sentance, who has persistently called for a small rise in rates, has been hopeful that fellow members of the committee will begin to join him endorsing a 0.25 per cent increase.Towards the end of the month, on 26 January, the Bank will reveal if any of the committee’s nine members joined Sentance in voting for a hike.Last month senior Bank official Paul Fisher made headlines by revealing the MPC would like to normalise rates to around five per cent, although “the speed at which that happens is another thing entirely,” he said.“What we need to do is to trigger the mindset in people that that’s where rates will eventually go back to,” Fisher added.“The MPC could decide that a small near term interest rate hike would support its credibility,” commented IHS Global Insight’s Howard Archer.And markets reacted yesterday to comments by ECB president Jean-Claude Trichet, who cited “short term upward pressure on overall inflation,” sparking concern that Euro rates could rise in coming months.The pan-European FTSEurofirst 300 index of top shares closed 0.6 per cent lower at 1,157.34 points after jumping 1.5 per cent on Wednesday. More From Our Partners Supermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com Rates held in spite of price inflation fears last_img

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