Excerpt from: Spot Forex
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| July 01, 2008 | | Spread bets and CFDs on interest rates | Spread betting and contracts for differences on British interest rates should consider that the Monetary Policy Committee (MPC) at the Bank of England is doing its best to reiterate that is plans to keep rates on hold for now.
However, inflation expectations remain, and this is putting pressure on the MPC to take action. But the members of the MPC are fairly firm, reports MarketWatch, in attempting to stymie these kinds of speculation:
They worry that rising expectations could feed through to price-setters
and wage negotiations, contributing to a wage-price spiral that would
require a sharper economic downturn to ensure overall inflation returns
to the government's 2% annual target. | Topic Tags: British interest rates, CFDs, contracts for differences, inflation expecations Britain, MPC, spread bets, spread bets interest rates, spread betting, spread betting British rates | |
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