If there is a rise in August I'd be surprised if it was more than .25%. Although the Bank needs to keep the heat out of debt, it will be reluctant to prompt any sharp downturns. Also, the swaps rates, which measure the cost of money for longer term interest rates, have started reducing month on month for the first time in nearly a year.
It's a tricky time for the MPC - it will be interesting to see what happens...
"LONDON....U.S. President George Bush is being urged to signal a dollar devaluation of up to 20% to rebalance the global economy ahead of Friday's Group of Seven and International Monetary Fund meetings in Washington, the U.K.'s The Business newspaper reported.
"Senior U.S. administration officials in Washington have over the past few days tried to influence the White House and U.S. Treasury to put pressure on the G7 to agree to a dollar depreciation in its final statement, the newspaper said."
It is stated that worry over the soaring U.S. current account deficit inspired this suggestion.
The Federal Reserve System today announced an increase of twenty-five basis points (0.25%) of its target for the inter-bank overnight loan rate known here as the federal funds rate. Today's announcement raises the target rate to 2.75%.
"Fed Raises Rates to Check Inflation" by Jeannine Aversa. 22 March 2005