Bank of England Slows Inflation by Speeding up Inflation
Bank of England Cuts Rates, Says Inflation Will Slow
By Brian Swint and Jennifer Ryan
Dec. 6 (Bloomberg) -- The Bank of England cut its benchmark interest rate for the first time in two years, saying inflation is likely to slow as higher credit costs hurt economic growth. . . . The slowest services growth in four years and surging money market rates led Bank of England policy makers to set aside concerns about faster inflation expressed just last week by King. With consumer confidence at its lowest since 2004, banks including Morgan Stanley say house prices may decline next year.
``This is likely to be the first of several rate cuts,'' said James Knightley, an economist at ING Financial Markets, who changed his forecast yesterday and predicted a reduction.
Even the steady old Brits have begun to panic.
Claiming that the fire is likely to die down by throwing gasoline (or petrol) on it, seems very un-Bank …