Concern about trouble in finance sector, plus renewed momentum in UK economy, could halt rises City analysts thought were a certainty
In 2006 the US central bank completed a series of interest rate rises that took its base rate from 1% to 5.25%. The plan was to cool a booming economy, but ended two years later with the great financial crash.
Analysts have changed their interest rate forecasts after the collapse of Silicon Valley Bank in the US, the sale of SVB’s London offshoot to HSBC for £1, and the rescue ofEach bank has pursued its own risky strategy, allowing regulators to say their problems are one-offs.
Martin Beck, chief economic adviser to the EY Item Club, said there was a strong case for easing back on interest rate rises before the bank rescues.
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