Newspaper article The Evening Standard (London, England)

Turmoil Is Tipped to Spark Rate-Rise Delay

Newspaper article The Evening Standard (London, England)

Turmoil Is Tipped to Spark Rate-Rise Delay

Article excerpt

CITY economists were today betting that turbulence in financial marketswill delay but not prevent another rise in interest rates. Soft manufacturingfigures eased pressure on the Bank of England to impose yet another rateincrease as it looks to bring inflation under control.

Turmoil in the markets has also raised concerns that further rate rises couldseriously damage an increasingly fragile economy. The Bank's monetary policycommittee has raised rates five times since last August to a six-year high of5.75%.

Economists were expecting rates to go up to 6% next month or in October but arenow looking to November for the next move. Howard Archer of Global Insightsaid: "We still expect interest rates to reach 6% this autumn but we feel thereis a growing probability that such a move may be delayed until November. Thecurrent turmoil in global credit and financial markets boosts the case forunchanged monetary policy for now." The Office for National Statistics saidBritish firms' costs unexpectedly fell by 0. …

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