Economic Briefing - August 2004

A monthly bulletin examining economic trends for engineering, manufacturing and technology-based businesses

Given the signals in last month’s MPC minutes and market expectations of a rate rise in August, it seems likely that the MPC will increase interest rates by 25 basis points.  Given also the strength of recent data we would understand the need for a further rise, but continue to ask for the MPC to proceed with caution, particularly if the housing market does prove to be slowing down.