Growth puts early rate hike in play

Source: Daily Mail, LondonNov.儲存 06--The pound and gilt yields soared yesterday on speculation the Bank of England will be forced to raise interest rates sooner than planned.Research group Markit said its index of activity in the dominant services sector rose from 60.3 in September to 62.5 in October ? its strongest reading since May 1997.It pushed the all-sector index ? which also includes manufacturing and construction ? up to a record high of 61.5 last month in a sign that the recovery is gaining momentum.The report fuelled speculation that the Bank will sharply revise its forecasts for the UK economy when it publishes its inflation report next week.The pound hit a day high of $1.6062 and euro 1.19迷你倉6 and the 10-year gilt yield ? a key measure of government borrowing costs ? rose above 2.74pc as investors bet on an early rate hike.Rates have been pegged at 0.5pc since March 2009 and the Bank has said there will be no increase until unemployment falls to 7pc or lower.Unemployment is currently 7.7pc and in August the Bank said it did not expect it to fall to 7pc until late 2016 but it is now expected to bring this date forward next week.James Knightley, an economist at ING, said: 'We still think interest rates could rise in early 2015.'Copyright: ___ (c)2013 Daily Mail (London, ) Visit the Daily Mail (London, ) at .dailymail.co.uk/home/index.html Distributed by MCT Information Services儲存倉