Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| January 09, 2008 | | Bank of England Rates | It would be highly unusual for one company's trading update to affect the Bank of England's decision, but the gloomy outlook for Marks and Spencer, and dramatic negative market reaction to it, will be hard for the committee to ignore. It's a very close-call and the members of the MPC are likely to be split over whether to cut rates on Thursday, but this news from M and S could be enough to sway one or two of its members into a quarter point cut. Certainly the stock market is taking this as a barometer of downgrades ahead. We now see a 60% chance of a 25 basis point cut on Thursday. | | |
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