It's a Long Road to Economic Stability Ken Symon On the Mpc's Rate Rise

Summary

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YOU are driving along the road, perhaps a wee bit too fast for the conditions. Your friend in the back says: "You maybe better give the brake a wee touch, things could get a little dicey up ahead." That effectively seems to have been the argument employed by Bank of England Governor Mervyn King and the other current seven members of the Monetary Policy Committee.

The MPC decided to raise the base rate by a quarter point to 4.75- per cent, the first time in two years it had decided that a little pressure on the brake was needed.

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It's a Long Road to Economic Stability Ken Symon On the Mpc's Rate Rise

We shall need to wait another couple of weeks until we get the logbook of the journey but it appears that the "going too fast for the conditions" argument came from a look at the "growth speedometer".

It showed that growth in the UK economy ...

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