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Interest rates will go up quicker than anyone expects, ex-Bank of England officials warn

Posted By admin On August 4, 2010 @ 9:07 am In Money Watch | Comments Disabled

Philip Aldrick
London Telegraph
Aug 4, 2010

Interest rates will have to rise earlier and more sharply than expected to keep inflation under control, two former Bank of England policy-makers have warned.

Sir John Gieve, an ex-deputy Governor, and Charles Goodhart, a previous member of the Monetary Policy Committee, are the most senior economists yet to have opposed the current orthodoxy that rates will stay low for a prolonged period.

The warning will come as a relief to savers but as a shock to home owners, many of whom are able to meet their mortgage repayments only because of record low rates of 0.5pc.

Addressing Fathom Financial Consulting’s Monetary Policy Forum, Sir John said: “I am expecting a recovery – when that is strongly established I’d expect rates to start rising faster than the market currently expects. I wouldn’t be at all surprised to see interest rates at 2.5pc a year from now.”

Full article here [1]

Eat like a king, stock up at eFoodsDirect today! [2]

Interest rates will go up quicker than anyone expects, ex Bank of England officials warn 150410banner7 [3]

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[1] Full article here: http://www.telegraph.co.uk/finance/economics/7925564/Interest-rates-will-go-up-quicker-than-anyone-expects-ex-Bank-of-England-officials-warn.html

[2] Eat like a king, stock up at eFoodsDirect today!: http://www.efoodsdirect.com//index.html?aid=14&adid=43

[3] Image: http://www.homegain.com/housead/homes_for_sale/index?entryid=11502

[4] Bank of England stuns City by slashing interest rates by 1.5% – the biggest cut in 28 years: http://www.prisonplanet.com/bank-of-england-stuns-city-by-slashing-interest-rates-by-15-the-biggest-cut-in-28-years.html

[5] Bank of England Holds Rates Despite High Inflation: http://www.prisonplanet.com/bank-of-england-holds-rates-despite-high-inflation.html

[6] Economist Predicts US Interest Rates To Explode To 3.75% This Year: http://www.prisonplanet.com/economist-predicts-us-interest-rates-to-explode-to-3-75-this-year.html

[7] The Case for Higher Interest Rates: http://www.prisonplanet.com/the-case-for-higher-interest-rates.html

[8] BIS Sees Risk Central Banks Will Raise Interest Rates Too Late: http://www.prisonplanet.com/bis-sees-risk-central-banks-will-raise-interest-rates-too-late.html

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