Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| February 14, 2007 | | Spread bets and CFDs should favour one more interest rate hike | The Bank of England is signalling that it will raise interest rates in the second quarter this year. Spread betting and contracts for differences should favour the rate hike, which is expected to take rates to 5.5 per cent. This move is likely to come despite the data on slowing inflation. Reuters reports:
Its prediction assumed interest rates rise to 5.5 percent in the
second quarter. The Bank forecast CPI inflation would clearly overshoot
the 2 percent target if rates were held at their current 5.25 percent.
"For now the message is clear -- the BoE is anticipating a
further tightening and will see how the land lies thereafter," said
Daragh Maher, strategist at Calyon. | | |
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