9 August 2001, 12:13  UK's BOE MPC sees risk of sharp sterling fall

London, Aug. 8 (BridgeNews) - Unexpected weakness in the world economy and signs that firms might respond by slashing investment were the main reasons why the Bank of England's Monetary Policy Committee cut interest rates 25 basis points to 5.00% on Aug. 2, the MPC said, as it published its latest quarterly inflation report. The risks to economic growth remain on the downside, the MPC warned, but fears that the value of sterling could collapse meant risks to inflation were more evenly balanced.

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