A quick PS…..
Neil Shah, Director at Edison Group, suggests some investor may question the wisdom of the Bank of England’s approach to interest rate policy:
“Today’s remarks from Huw Pill seem to confirm what we already know: that the Bank of England does not want to be the first major economy to take the plunge on interest rates, and intends to march more or less in lockstep with The Fed – which is expected to adjust rates no earlier than June.
Observers may question the ultimate wisdom of this approach. UK inflation has recently dropped to its lowest levels in two and a half years, and we learn just today that grocery inflation has fallen to a 30-month low. Switzerland cut its rates back in March, hoping to stimulate growth. The desire for monetary discipline is certainly understandable, but with the World Bank’s recent warning that the UK’s economy is stagnating, there are now signs that Threadneedle Street’s policy is going into diminishing returns.”
Closing post
After the second closing highs in a row on the London stock market, and a new intraday high this morning, it’s time to wrap up.
Here’s today’s main stories, first on the FTSE 100’s big day:
And here’s the rest of today’s news:
