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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