UK Economics

UK Economics Focus

13 June, 2001

Inflation & Interest Rates – Sticking to our Guns

A succession of stronger economic data releases, coupled with speculation of early entry into the single currency, has prompted a dramatic shift in the markets’ expectations of the future path of interest rates in recent weeks. Money markets are now pricing in more than a quarter point rise in rates before the end of this year and a further increase to 6% or so in 2002.

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