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How High do UK Interest Rates Need to Rise?
Author(s) -
Sentance Andrew,
Williams Geoffrey
Publication year - 1997
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.00085
Subject(s) - pound (networking) , economics , interest rate , judgement , dilemma , monetary policy , monetary economics , keynesian economics , political science , law , philosophy , epistemology , world wide web , computer science
The Bank of England has inherited the responsibility for monetary policy at a difficult time. The UK economy has picked up strongly over the last year, but the pound has surged ahead. Consumer windfalls are also boosting the growth of domestic demand though their impact is uncertain. In this article, Andrew Sentance and Geoffrey Williams sift through the evidence relating to the Bank of England’s interest rate dilemma. At present, interest rates appear close to their peak. But that judgement needs to be kept under review as new evidence unfolds about the momentum of domestic demand and the impact of the strength of the pound.