Financial Times FT.com

Interest rates: Surprise increases are good for trading

By Tony Tassell

Published: June 15 2007 09:58 | Last updated: June 15 2007 09:58

Mervyn King once famously declared an ambition to make monetary policy boring as governor of the Bank of England.

But recent interest rate shifts have been anything but. The Old Lady of Threadneedle Street caught markets by surprise in January with a rate rise that Andrew McLaughlin, chief economist of the Royal Bank of Scotland, referred to as “one of the biggest shocks in the history of the monetary policy committee”.

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