UK Rates Will Rise in First Half - Economist Intelligence Unit

By Economist Intelligence Unit, PRNE
Tuesday, February 15, 2011

LONDON, February 16, 2011 - UK interest rates will rise in the first half of this year as inflation
creeps up but Eurozone and US rates will stay put, according to Robin Bew,
Editorial Director at the Economist Intelligence Unit.

In an interview with financial news website Bew
says the Bank of England has been guilty of "undercooking" inflation
forecasts thereby undermining its credibility.

"We think that ultimately they're going to have to move in part just to
rebuild some of that credibility, so we think rates will go up first half of
this year."

On a brighter note, Bew argues the global economy is growing robustly and
fears of a double dip recession have receded. Political instability in the
Middle East could have a wider impact if protest spreads and with the world
still dependent on oil from the region.

The interview and transcript are available now on, the online financial broadcaster, features in-depth
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