The Bank of England is in a tight spot at the moment. Growth and confidence
is falling, unemployment is starting to rise and consumers have less money
in their pockets. The Bank would probably like to give the economy a boost
by cutting interest rates. But inflation is above target at the moment and
the Monetary Policy Committee seems to be prepared to tread carefully for
the time being. All of which might confuse students!
We have prepared a background PowerPoint presentation which can be freely
accessed / downloaded using the link below. This includes some commentary
and data charts that can help students understand the background to the MPC
decision.
http://www.tutor2u.net/newsmanager/articlefiles/811-base_rates_101105.ppt
Best wishes
Jim
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