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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (59629)	8/10/2006 12:25:55 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

Bank of England Hints at Higher Rates A WALL STREET JOURNAL NEWS ROUNDUP August 10, 2006 The Bank of England signaled that interest rates will probably need to rise a little further to keep inflation on course for the central bank's 2% target. In the bank's quarterly inflation report, published a week after the central bank unexpectedly raised rates a quarter point to 4.75%, the bank said economic growth and inflation would on average be higher over the next two years than it had forecast in May. Inflation, already half a point above the 2% mark, was predicted to rise further in the coming months. Bank of England Gov. Mervyn King said there was a 50-50 chance that inflation would exceed 3%. While some economists believe factors such as a strengthening pound will keep inflation in check, the bank's forecast now sees inflation overshooting the target for longer than at any time since the bank was given full responsibility for interest-rate policy in 1997. The bank marginally increased its growth assumptions for the U.K. since its last inflation report, in May, forecasting that U.K. gross domestic product will grow by 2.75% this year, and about 3% in 2007. Also yesterday, the U.K. reported a slightly narrower trade deficit for June, although markets had been expecting the gap to narrow further still. The global deficit on goods narrowed to £6.46 billion ($12.33 billion) from a revised £6.98 billion in May. France also reported improved deficit numbers, with the budget gap narrowing in June thanks to lower public spending and the remaining effects of a shift to a new accounting method. Spending in June fell to €131.9 billion ($169.47 billion) from €148.3 billion a year earlier, the French Finance Ministry said. The European Commission has been pressuring France to narrow its budget deficit. Meanwhile, Norwegian retail sales in June rose 4.6% from a year earlier and fell 1.1% from a month earlier, the Norwegian Statistics Bureau said. The clothing, shoe and furniture segments showed the biggest monthly declines.