Following on from Ryan’s excellent post Director of Policy Adam Marshall has urged the MPC ” not to jump the gun”
If we are to see continued business investment growth, following the abysmal levels seen over fat too many years, companies need to be confident that they will be working in a low level interest-rate environment, facing only gradual rate rises rather than sudden change
Earlier than expected rate rises could mean that current levels of growth are as good as it gets for the UK economy
It’s not just going to be households who feel the heat of rate rises. The BOE had better get this absolutely right, and with a large chunk of luck, or else we’ll have a rather large dose of Carney carnage to deal with
Can the markets really be so myopic as to look no further than rate yield? Judging by this move and the kiwi’s rally yesterday it would sadly appear so.
