Sterling surges as BoE flags earlier rate rise

Breathnach warns against

Breathnach warns against"complacency on no hard border issue

The Reserve Bank of India (RBI) on Wednesday kept its main repo rate on hold and retained its "neutral" stance, warning that it will closely monitor accelerating inflation but also saying economic growth needs to be "carefully nurtured". "That was a clear message from the bank that the (interest rate) curve was a little too flat for their liking".

Before today's statement, investors saw a almost 50-50 chance of the next hike coming in May, when the Bank of England is due to update its economic forecasts again. The Bank of England appears to be eager to proceed with additional rate hikes and not too anxious regarding the Brexit process and its implications for the economy.

While policy was widely expected to remain unchanged, the bank made clear that it is ready for rate hikes in 2018, saying that policy could be "tightened somewhat earlier and by a somewhat greater extent over the forecast period" if the economy continues to grow as forecast. The projection for inflation was unrevised, which signifies that the central bank still anticipates inflation to surpass the 2 percent target throughout the forecast horizon, noted Nordea Bank in a research report.

The Monetary Policy Committee feels the "nascent recovery needs to be carefully nurtured and growth put on a sustainably higher path through conducive and stable macro-financial management", the central bank said. It now still expects average wage growth to pick up to 3 per cent this year, despite similar forecasts of an uptick frequently being proven wrong in the past.

Sterling jumped by more than a cent against the USA dollar, although it later reversed most of that increase. Backwards looking indicators (those which take into account actual hard data) are reasonably positive, with the UK's GDP in the fourth quarter growing at 0.5% - better than had been forecast.

British hacking suspect wins USA extradition fight
Many argue that the USA government wanted to make an example of Swartz and the charges were what caused him to take his own life. Love , who was charged in New Jersey, New York and Virginia, allegedly hacked into the networks of the Federal Reserve, the U.S.

Banks are also facing a higher cost of funds, a key expense for the lenders, and more stringent regulatory requirements for their liquidity coverage ratios, according to Ashish Parthasarthy, treasurer at HDFC Bank.

Andrew Sentance, a former BoE rate-setter and senior economic adviser to accountants PwC, said it was possible that the BoE could raise rates two or three times in 2018.

"The pace of United Kingdom economic growth slowed sharply at the start of the year as January saw a triple whammy of weaker PMI surveys", Chris Williamson, IHS Markit's chief business economist said in a statement.

The comments came after the bank raised its growth forecasts for Britain due to the strong global recovery. It claimed that factors like higher MSP promised to farmers, increased custom duties on consumer goods and slipping fiscal targets announced under the union budget could lead to slow growth.

"It is perhaps worth questioning whether the MPC feels the need to eradicate inflation now ahead of the Brexit deadline given the dire economic forecasts released overnight".

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