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HOLD

The MPC's May forecast had anticipated the upward revision to GDP that was confirmed by the Blue Book.

As such there was no real 'news' in the Blue Book and no need to respond at this early stage.

Equally the May forecast incorporated a rate hike in due course so it is fair to say that the Blue Book data made an eventual hike that much more of a reality.

Anatole Kaletsky
Chief economics commentator, The Times

HOLD

Rupert Pennant-Rea
Former Deputy Governor of the Bank of England

RAISE to 4.75 per cent

The biggest statistical news of the past month was the upward revision to GDP, stretching back several years.

Unfortunately, its main significance for current monetary policy was to remind us that official statistics are fallible. They must be complemented by surveys of business and consumer attitudes, by market interest rates, and by movements in asset prices.

This evidence is mixed, but on balance suggests that economic growth remains robust, and that inflation is more likely to rise than fall over the next couple of years. In which case, interest rates will need to rise, and there is merit in moving sooner rather than later.

Sir Steve Robson
Former Second Permanent Secretary at the Treasury

Explore Economics

• Pre-Budget Report 2009

• Budget 2009

• World Economic Forum

• The Times MPC

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