UK: Economists Favour Cutting Rates. Sydney December 3. The Sunday Times carries a piece quoting two high profile UK economists calling for a rate cut at the next MPC meeting on Thursday, to re-invigorate the slowing economy. Patrick Minford, a professor at the Cardiff Business School calls for a 75pt cut to stabilize the "fast-deteriorating" situation and Tim Congdon founder of Lombard Street Research, now at the LSE and a hawk on interest rates, favours a 50pt cut in order to restore normality to the banking system. A Reuters survey has only 15 of 56 City economists expecting a cut, due to inflationary pressures, but unless liquidity returns to the credit markets, the calls for the BoE to follow the Fed will grow.
GBP/USD has traded in a 2.0546/68 range this morning and looks set to range trade into the European open. Initial support and resistance come in at Friday"s 2.0535/2.0610 range. The Cable trades 2.0565/70.
GBP/USD has traded in a 2.0546/68 range this morning and looks set to range trade into the European open. Initial support and resistance come in at Friday"s 2.0535/2.0610 range. The Cable trades 2.0565/70.