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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (11540)	9/9/2004 9:29:59 AM
From: mishedlo	Respond to of 116555

BoE makes ´best decision´ for business - BCC Thursday, September 9, 2004 11:35:23 AM BoE makes 'best decision' for business - BCC LONDON (AFX) - The Bank of England's rate-setting Monetary Policy Committee has made the "best decision" for business by keeping interest rates on hold at 4.75 pct, according to the British Chambers of Commerce David Frost, the BCC's director-general, said there is growing evidence that the housing market is cooling down, suggesting that earlier rises in interest rates appear to be running their course. "The fact that the financial markets now expect rates to peak at a lower level than before demonstrates the MPC's good sense in waiting to judge the effects of earlier rises," he said He noted poor retail sales figures in July and two successive monthly falls in manufacturing output These, he said, reinforce the need for the MPC to take a cautious approach in the months ahead. "Rates now appear to be close to their neutral level, and it is essential that unwarranted rises are not imposed on the business sector," he added

To: Chispas who wrote (11540)	9/9/2004 9:33:30 AM
From: mishedlo	Respond to of 116555

BoE rate verdict welcomed, may herald a period of stable rates - EEF Thursday, September 9, 2004 11:20:19 AM LONDON (AFX) - The Bank of England's decision to keep interest rates unchanged today may herald a period of stable rates according to the manufacturers organisation, EEF. Today's decision to leave the key repo rate unchanged at 4.75 pct, should mark the start of a longer period of stability, provided that data continue to show the housing market and consumer spending slowing, it said EEF Chief Economist, Steve Radley, lauded the central bank for its efforts to rein in consumer spending and borrowing levels without damaging more vulnerable parts of the economy - such as the manufacturing sector. "The evidence suggests the BoE has succeeded in taking the steam out of the economy without damaging manufacturing. While it may be too early to put the medicine back in the cabinet, it now looks sensible to reduce the frequency of the dosage," he added The central bank has raised the cost of borrowing five times since November last year, with the most recent hike last month However, a raft of weak economic data over the last few weeks has cemented expectations that interest rates are at, or near, their peak Earlier this week, evidence emerged that UK manufacturers are feeling the pinch of higher borrowing costs, while activity on the high street appears to be waning.