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Anyone know how the short term Interest rate for the UK is determined.

Discussion in 'BlackHat Lounge' started by realdeal85, May 1, 2013.

  1. realdeal85

    realdeal85 Junior Member

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    Hi anyone know how the short term interest rate in the UK it determined.

    I am curious to find out anyone shed any light ?
     
  2. ShadeDream

    ShadeDream Elite Member

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    Code:
    http://www.bankofengland.co.uk/publications/Documents/other/monetary/inside_mpc.pdf
    http://www.bankofengland.co.uk/publications/Documents/other/monetary/montrans.pdf
     
    Last edited: May 1, 2013
  3. realdeal85

    realdeal85 Junior Member

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    Thanks will have a read, anyone have any other summarized information ?
     
  4. ShadeDream

    ShadeDream Elite Member

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    Q. How is the target achieved?
    A. Each month the MPC sets short-
    term interest rates at a level it
    thinks will deliver 2% inflation.
     
  5. realdeal85

    realdeal85 Junior Member

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    So more or less this is it is set to obtain an inflation rate of 2%, however how is this gone about in order to set the short term interest rate what is taken into consideration and what is altered the money supply?
     
  6. RealEcon

    RealEcon Regular Member

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