-Sent from my BlackBerry® phone- Ronald e-Mail -----Original Message----- From: MeLinda MeLisa <[email protected]> Sender: [email protected] Date: Thu, 10 Feb 2011 02:53:40 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] Inflation could force Bank of England to raise interest rates, says Deputy Governor Charlie Bean Inflation could force Bank of England to raise interest rates, says Deputy Governor Charlie Bean. Thursday, February 10, 2011 - http://marketpin.blogspot.com/ The prospect of interest rate rises edged closer as one of the Bank of England's Deputy Governors warned that it may have to act if commodity prices continue to rise and inflation becomes embedded. Despite stressing that delaying rate rises has been the right course of action, Charlie Bean said the Bank will have to act if commodity prices remain high. "We would expect, providing there aren't further shocks, that inflation will come back down toward the target," he told the Western Mail. If inflation remains high, though, "we may well have to respond to that by keeping domestically generated inflation lower", he said. "It is one of the risks that continuing strong growth in emerging markets may mean a tendency for commodity prices to continue to rise relative to the general prices of goods and services." His warning came as Andrew Sentance repeated his call for a rate rise in an interview with CityAM. "The longer we delay [monetary tightening] the more there is a risk that interest rate rises when they come will have to be larger, and then there will be a bigger risk of a shock to confidence," he said. He added that with inflation at almost double its 2pc target and likely to rise even further, the Bank must act soon to safeguard its inflation-fighting credibility. Both policy makers made it clear they are not overly concerned by the 0.5pc contraction in the final three months of last year, suggesting it may not deter them from tightening policy. "We need to be prepared to look through fluctuations in GDP growth when we're recovering from recession – growth figures are never linear and smooth in recoveries," Mr Sentance said. Last month, a second member of the nine-strong Monetary Policy Committee, Martin Weale, joined Mr Sentance in voting for a quarter-point rise. For other members the decision was "finely balanced", minutes of the meeting showed. Economists said a strong reading on Thursday's services PMI survey, following robust construction and manufacturing surveys this month, could persuade more MPC members to vote for an increase before the next forecasting round in May. "Even if they don't go in February, I am not sure we're going to have to wait until May. The Inflation Report could tee us up for a March or April hike," Ross Walker at Royal Bank of Scotland said. "If we get an outsize bounce in the services PMI on Thursday, it's toss a coin time - it's really going to be close." ------------------------------------ ## StockForex ## _________________ ::Forum:: All about Forex and Stock Trading ; all currency pairs. All Major World Indices, Asian Stock Index. and Individual/single stock. We're not goin' anywhere Well, it's all right here. Enjoy it !! :) _________________ http://finance.groups.yahoo.com/group/StockForex Yahoo! Groups Links ------------------------------------ Kunjungi situs http://www.info-saham.com untuk informasi seputar saham. SEMUA POSTING DI MILIS INI TANGGUNG JAWAB PENGIRIM EMAIL DAN BUKAN ADMIN MILIS. SEMUA POSTING DI MILIS INI BUKAN UNTUK MENGAJAK MEMBELI ATAU MENJUAL EFEK. SETIAP KEPUTUSAN INVESTASI MENJADI TANGGUNG JAWAB PIHAK PEMILIK INVESTASI ATAU PEMILIK MODAL. [email protected] untuk berhenti dari milis saham [email protected] untuk bergabung ke milis saham Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/saham/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/saham/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
