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Article: DESPITE no change to interest rates after Thursday's monetary policy committee meeting and equity market jitters over corporate earnings, we believe a base rate rise will happen sooner rather than later.
- Article from:
- Sunday Business (London, England)
- Article date:
- July 7, 2002
CopyrightCOPYRIGHT 2002 Sunday Business Publishing. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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DESPITE no change to interest rates after Thursdays monetary policy committee meeting and equity market jitters over corporate earnings, we believe a base rate rise will happen sooner rather than later.
A rise is likely to see the gilt market weaken, with yields rising causing investors to look towards credit in search of value. But with investment grade spreads at around 79bp peaking at 137bp in mid-2000 plus the deterioration in credit ratings and uncertainty in corporate earnings, it is difficult to predict further significant tightening here. Equally, with strong demand from both institutional and retail, combined with coupon and redemption monies (pound ...