mpc.theyserveforyou.com

mpc: 2 The main development in financial markets over the month had been the significant rise in short and long-term market interest rates. Sterling short-term interest rates had increased in response to comments by Committee members and the publication of the Minutes of the Committee's February meeting. Although none of the economists surveyed by Reuters had predicted a change in rates at this meeting ­ the mean probability attached to `no change' was 75% ­ expectations of an increase in the Bank's repo rate by the middle of the year had risen. The rise in sterling market interest rates was beginning to feed through into increases in some fixed-rate mortgage rates. US dollar short-term interest rates had also increased, in reaction to stronger-than-expected US economic data, but equivalent euro rates were little changed.