Interest Rate Rises & that “Double Dip” Recession
At the Kent Invicta Chamber of Commerce AGM last month we had a great presentation by Phil Eckersley from the Bank of England who enlightened us all on the fact that there was no double dip recession as shown in slide below.
Apparently the requirement to produce figures 6 weeks after the quarter end does not capture all the data so when the complete figures are received, the information reviewed and adjusted the information produced shows a different picture.
So incomplete data and press hype by might have something to do with how the private sector has reviewed its purchasing and investment policies which in turn might just have had a knock on effect on the economy.
Then there was an item on Radio 4 Today’s programme on how Turkey’s financial stability would be impacted upon when its loans from the US would no longer be interest free as the Federal Bureau is planning a rate rise next month. Now we very carefully try to stay away from politics in our blogs for very good reasons but our ears pricked up at the mention of interest rates and if the US are planning rate rises what does this mean for the UK economy?
The Bank of England’s presentation gave us another very useful slide in this presentation seeing a possible rate rise from our current 0.5% to 1.7% over the next 3 years but will the impending US rate rise mean that the UK will bring in rate rises sooner?
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