Summary
The Bank of England's unexpected decision to increase interest rates last week was a pre-emptive strike to avoid even higher rises, the governor said last night. Mervyn King said in a speech to the Birmingham Chamber of Commerce that the unexpected quarter-point rate hike to 5.25 per cent had been vital to help prevent higher increases as inflation strayed further away from the Government's 2 per cent target. The Bank governor said: "By responding early to changes in the inflation outlook, the MPC (Monetary Policy Committee) ultimately needs to raise interest rates by less than would be the case if we delayed."
THE Lord Chancellor yesterday defended Government initiatives to reform the criminal justice system against attacks by magistrates who claim the changes are being made in the interests of cost, not justice. Lord Falconer said there was no extra cash to put into the system and urged co-operation on making it more efficient instead.See the full content of this document
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Rate Rise 'to Avoid Later Increase'
MORE than 200 government departments and agencies, ranging from tax offices to ...
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