Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| September 12, 2006 | | Inflation growing, making MPC nervous | The Bank of England's Monetary Policy Committee appears to be nervous about the rate of inflation in the U.K. Despite falling petrol prices, due to lower crude oil prices, other areas of the economy are experiencing inflation. Interest rate hikes may be needed to help curb the inflation. For spread betting, it is possible to place financial spread bets on how much interest rates are likely to rise (or fall), as well as spread betting on whether or not the sterling will strengthen in the next few weeks on news of a possible rate hike. The Guardian reports on the possibility of an interest rate hike:
The Consumer Prices
Index (CPI) rate of inflation hit 2.5% in August compared with a rate
of 2.4% in July, the Office for National Statistics said.
It was the fourth successive month the rate stayed above the Bank's
2% target and spells trouble for households struggling to pay off
mortgages, loans and credit card bills, although it is positive news
for people with savings.... The Consumer Prices
Index (CPI) rate of inflation hit 2.5% in August compared with a rate
of 2.4% in July, the Office for National Statistics said.
It was the fourth successive month the rate stayed above the Bank's
2% target and spells trouble for households struggling to pay off
mortgages, loans and credit card bills, although it is positive news
for people with savings.
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