With consumer price inflation below the 2 target level in both December and January and clearly below the levels forecast by the Bank of England in their November quarterly inflation report, a near-term interest rate cut suddenly looks a very real possibility again.
More Quotes from Howard Archer:
The immediate impression is that the inflation report is pretty neutral. It does little to encourage the view that the bank could trim rates in the immediate future.Howard Archer
This is likely to put a floor under house prices, but we remain highly doubtful that house prices will move substantially higher on a sustained basis any time soon. If house prices start to accelerate markedly, we believe buyer interest will soon diminish, thereby keeping a lid on prices.
Howard Archer
Manufacturers will be hoping that healthier growth in the euro zone and a recently softer pound will increasingly feed through to give them with a significant boost in 2006.
Howard Archer
The disappointing decline in manufacturing output is most unlikely to sway the Bank of England from leaving interest rates unchanged on Thursday.
Howard Archer
For now at least, the Bank of England will be very wary that a trimming of interest rates could excessively stimulate the housing market and risk sending house prices markedly higher. It certainly further rules out a move today.
Howard Archer
We suspect economic activity over much of 2006 will be held back by sluggish consumer spending and that the Bank of England's growth forecast will prove to be too optimistic.
Howard Archer
Readers Who Like This Quotation Also Like:
Based on Topics: England QuotesSaddam Hussein's trial would not be public since he could name countries and persons whom he gave money.
Iyad Allawi
One of the best things in the world to be is a boy; it requires no experience, but needs some practice to be a good one.
Charles Dudley Warner
Any Human Rights Council reform that allows countries that sponsor terrorism to remain as members, such as Cuba, is not real reform. And in the past, countries such as Libya, Iran and Syria have participated on this council.
Michael McCaul