Thursday 12th July 2007
Business banking stands to benefit from increases in the Bank of Englands base rate, it has been advised.
Andrew Sentance, a member of the banks monetary policy committee which sets the rate, states that inflation is a more important indicator of the health of the economy.
He adds that business banking is in good form if this suggestion is taken into account.
Mr Sentance stresses that the positive impact of monetary policy lies "not in a temporary respite from higher interest rates, but in achieving a sustained climate of low inflation and economic stability".
His comments came as the Royal Institution of Chartered Surveyors published statistics showing inflation in the housing market more than halved in June.
The rate of house price growth was 10.6 per cent over the course of the month, compared with 22.5 per cent in May, the figures show.
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