The Bank of England leaves interest rates unchanged.

Sites to Visit for More Information:

1. Bank of England

Questions:

1. What is the role of the Bank of England in the UK economy?
2. Describe how a cut in the interest rate can lead to "inflationary pressures."
3. Why does "sluggish economic growth overseas and a weak UK manufacturing sector" support the case for a rate cut?
4. Describe the ripple effects of monetary policy if the Bank of England speeds up money growth and lowers the interest rate.

Chapters: 22, 26

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