The MPC could remain on the sidelines for some months to come as it monitors the strength of consumer spending and the housing market, and also looks to see if high oil and energy prices are feeding through to have second round inflationary effects. |
The MPC still has to see conclusive sustained evidence that 2006 pay settlements are remaining contained. |
The Nationwide data provides support for our long-held view that house prices will be unable to sustain sharp gains for some time to come. |
The overall trade performance was dragged down by a fifth successive deficit in oil trade and a reduced surplus in services. |
The sector may see modest expansion in the first quarter of 2006, having been a major drag on overall growth in the fourth quarter. |
The slowdown in euro zone growth will not deter the ECB from raising interest rates in March and a further hike remains very likely in June. |
The strength of the public finances in January effectively guarantees that Brown will be able to avoid making any major tax hikes or significant spending cutbacks in March's budget. |
The testimonies to the Treasury Select Committee reinforce the impression that interest rates are set to remain on hold for several months to come. |
The underlying picture that seems to be emerging is that consumer spending will be reasonably healthy over the Christmas period. If borne out by hard data, this dilutes the case for an interest rate cut early in the New Year. |
There is a very real risk that consumer spending will be muted for an extended period without any other areas of the economy compensating significantly. |
There is undeniably a growing risk that house prices could move markedly higher over the coming months. Indeed, this risk is clearly showing more prominently on the Bank of England's radar. |
This (CPI data) very much keeps the door open for an interest rate cut in February, although the Bank of England may still prefer to wait while it monitors the strength of consumer spending and wage settlement levels early in 2006. |
This [CPI data] very much keeps the door open for an interest rate cut in February, although the Bank of England may still prefer to wait while it monitors the strength of consumer spending and wage settlement levels early in 2006. |
This confirms that late in 2005 there was still no evidence that pay was starting to be pushed up by recently higher consumer price inflation and increasing energy bills. |
This increased housing market activity has clearly led to some recent firming in house prices, and there is undeniably a risk that prices could move sharply higher over the coming months. |