Pantheon Macroeconomics - Markets currently judge that U.K. interest rates will rise about six months after the first Fed hike. But the Bank of England seldom lagged this far behind in the past. Admittedly, the slowdown in the domestic economy that we expect will require the Monetary Policy Committee to be cautious. But wage and exchange rate pressures are likely to mean six months is the maximum period the MPC can wait before following the Fed's lead.

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26 Oct. 2015 MPC Can't Wait too Long After the U.S. Fed Raises Rates

By Samuel Tombs

Markets currently judge that U.K. interest rates will rise about six months after the first Fed hike. But the Bank of England seldom lagged this far behind in the past. Admittedly, the slowdown in the domestic economy that we expect will require the Monetary Policy Committee to be cautious. But wage and exchange rate pressures are likely to mean six months is the maximum period the MPC can wait before following the Fed's lead.

Posted: 26th Oct 2015 in 'U.K. Documents'

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Keywords for: U.K. Documents | 26 Oct. 2015 MPC Can't Wait too Long After the U.S. Fed Raises Rates

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