Friday, June 6, 2008

How Does the Bank of England Set Interest Rates?

Readers Question: How Does MPC set interest rates.Yesterday, the nine members of the MPC voted to keep base interest rates unchanged at 5%. What explains their decisions to change rates?The MPC have an inflation target of CPI 2% +/- 1 set by the Government. Therefore, predictions of future inflation are the most important factor in [...]

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[Source: Finance Blog]

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