Wanna Argument?

Tasks and activities

1. Why does the Monetary Policy Committee of the Bank of England change the interest rate in the UK? What information does it use in its decision-making?
2. Why might observers believe that a rate rise in May 2007 will be the last in the short-term future?
3. Will sterling continue to rise against the US dollar? What might cause its value to fall?
4. What other policies could be taken by the government in order to affect CPI inflation in the UK?
5. Find out the level of interest rates in the UK's competitor countries: USA, Eurozone, Japan. What does this tell you about the UK's attractiveness to speculators with 'hot' money?
6. Why have energy prices in the UK begun to fall dramatically? What might cause them to rise again in the future?