Favour over the past month. Weve seen sterling rise that will help temper the Price Pressures from imports. Weve also seen other pressures in the markets where theyve been raising some questions about the Bank Of Englands credibility, as in Mortgage Rates going up without decisions being made that has all calmed down, too. And the public s expectations of where inflation is going, which were really very high, have now begun to temper. So thats also going in the banks favour. But a crucial issue is that they have raised rates by 5 the impact of that has really taken some time to filter through into the economy, there is sort of turning the type of rate rises on. Turning the tap. We are beginning to see the impact of that now weve seen in the Housing Market, weve seen it in some corporate insolvencies too. So that all leads back to this Balancing Act between crushing inflation, but avoiding a downturn its a tight rope and we are probably approaching the most narrow, trickiest part of tha
chief uk & euro area economist at nomura. good morning to you, george. so what do you think the bank will do today? i what do you think the bank will do toda ? ~ f what do you think the bank will dotoda ? ~ j ., , do today? i think they ll raise interest rates, do today? i think they ll raise interest rates, there - do today? i think they ll raise interest rates, there is - do today? i think they ll raise interest rates, there is little l interest rates, there is little doubt they ll do that, everybody is forecasting it. but the big question is whether they will do a quarter of a percent or half a percent. remember last time, every economist was looking for a quarter and they did a half. could they repeat that? i think it s unlikely because some of the economic news we ve heard has actually improved, we ve seen inflation week and a bit, we ve seen some of the surveys become a bit softer, we ve seen employment not as strong, so i think all those reasons are reasons they won t do quit