To gauge how tall interest rates will go,and how snappily, we need to understand how fiscal and monetary policy interact, or writes Gavin KellyWith prominent members of the Bank of England’s monetary policy committee (MPC) – not least the governor – lining up in recent weeks to talk up the prospect of rate rises at some point in the coming months,this week’s assembly has already sparked another burst of speculation approximately when the first hike in eight years will happen.
Whatever your take on the exact timings of monetary lift-off – whether you’d opt for August or April – the far more important issue is the medium-term path of increases that follow.
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Source: theguardian.com