(email)

Philip,

Yes, thanks. Might be to ‘give room’ to the Fed or maybe the modern version of ‘trade wars’ being played out?

The UK is saying to the US there’s a limit to using the $ as a ‘weapon’ to ‘steal’ agg demand. They see it as a game of chicken- the cb that’s willing to risk the inflation the most cuts and get the agg demand? An interesting twist on the ‘beggar they neighbor’ wars under fixed fx.

warren

On Dec 6, 2007 8:22 AM, Philip Arestis wrote:
> Philip Arestis saw this story on the BBC News website and thought you
> should see it.
>
> ** Message **
> Dear Warren,
>
> This has just come through. Not unexpected.
>
> Best wishes, Philip
>
> ** UK interest rates trimmed to 5.5% **
> The Bank of England cuts UK interest rates from 5.75% to 5.5% amid signs that the economy is slowing down.
> < http://news.bbc.co.uk/go/em/fr/-/1/hi/business/7130443.stm >