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At sixes and sevens over seven or eight

Article Abstract:

United Kingdom interest rates remained at 7.5% in Jul 1998, and government securities (gilts) rallied, indicating a belief that rates had peaked. It is still unclear, however, whether rates will be raised again. Some analysts see a possible rate rise if pound sterling drops in value, leading to inflationary risks. There is also concern that stagflation may become a problem, with high inflation and economic growth likely to slow. It is unclear whether consumer confidence has been undermined, or whether one-off factors such as the weather have affected consumer spending.

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Headed for 8%

Article Abstract:

United Kingdom interest rates could rise to 8% according to Richard Jeffrey from Charterhouse. Domestic demand has increased and could rise further due to windfall bonuses. Rising inflation could be reflected in higher wages and earnings. The proportion of windfall bonuses that is spent could be higher than forecast which means that consumption presents a particular inflationary threat. UK rates may be raised enough by the Monetary Policy Committee for a reduction in interest rates prior to year-end 1998.

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