Will they or won't they?

Good Morning to you all. A cloudy morning here in Edinburgh but the promise of some sunshine later. Hooray! So what's happening out there?

UK service sector growth accelerated unexpectedly last month, showing no immediate scars from turmoil in global financial markets, and house prices continued to advance in spite of recent interest rate rises, surveys showed yesterday.
Such signs of strength would have been likely, before the turbulence in credit and stock markets began in earnest last month, to have fuelled expectations of a further rise in benchmark UK interest rates.

However, the Bank of England's Monetary Policy Committee is now expected to hold UK base rates at 5.75% at the end of its latest two-day monthly meeting today. I am sure we will be keeping an eye on this one today.

The Bank of England, moved yesterday to tackle crippling overnight interbank lending rates with its first-ever promise under the current money market regime to release extra reserves if required.

Yesterday was the first time the Bank of England has pledged to make extra reserves available, beyond the aggregate agreed in roughly monthly maintenance periods with about 42 banks who use this system, since its current regime for money market operations came into force in May 2006.

It may be dull here in Edinburgh this morning but it is all happening out there in the markets.

Here at CIOBS revision courses continue with the Financial Economics session taking place today. I am sure that all students attending will be clued up on the activity in the markets. Will they have a break at midday to check whether or not interest rates have changed? Will they or won't they?

For his many fans who have been asking the question"Where is Raymond?" I can exclusively reveal that the great man returns on Monday. So not long to go now folks. Just one more weekend to go.

Keep an eye on the markets!

Michael ( Still flying solo)