BoE plays down rate rise : The pound has fallen sharply after the BoE warned that markets were wrong to assume that it would start raising interest rates soon. Sterling immediately dropped a cent and a half against the dollar. It came as the Bank held interest rates at 0.5% and kept its QE programme unchanged. The decisions were made at the first meeting of the MPC since Mark Carney took over as governor from Sir Mervyn King. Share prices rallied in London in anticipation of the further continuation of cheap borrowing costs. The FTSE 100 index jumped 50 points on the news, and later gained a further lift from a promise by the ECB to keep eurozone rates low, taking it to 3% up for the day. The unusual statement by the MPC comes as the economy shows signs of recovery, with several industry surveys pointing to rising business optimism. Separately, the Halifax has reported that house prices across the UK were 3.7% higher in the three months to June than a year ago, adding to evidence that the property market is on the rebound, particularly in the South East. Source : The Times, Page: 1 Financial Times, Page: 1 The Daily Telegraph, Page: 1 The Independent, Business, Page: 48 The Guardian, Business, Page: 33 Daily Express, Page: 66 The Sun, Page: 4 Daily Mail, Page: 4 Evening Standard, Page: 1
Posted on: Fri, 05 Jul 2013 07:37:31 +0000
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