18-01-2008
Deputy governor outlines interest rate concerns
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The deputy governor of the Bank of England has outlined the difficulties faced over future decisions in relation to the direction of interest rates.
Sir John Gieve has confirmed that the Bank must balance the twin demands of controlling inflation and responding to the needs of an economy that is weaker than it once was.
The UK economy is affected by a number of inflationary pressures, including rising prices for items such as food and electricity.
"In reaching our decisions, the [monetary policy committee] always looks not just at the central projection for the economy but at the risks on either side," said Sir John, in a report by the Financial Times.
"That will require not just difficult judgments but careful explanation in the months ahead."
Sir John made his comments during a speech at the London Chamber of Commerce and Industry.
Presently, interest rates are set at 5.5 per cent.
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