But he did point out beneficial side effects of the rise this year in stock and bond prices.

Both stock and bond prices fell in London after the bank's move was announced.

"Failure to get such a deal would probably lead to a decline in stock and bond prices."

After the reports were issued, stock and bond prices jumped.

An interest rate increase, however, might hurt stock and bond prices.

He continued, "So stock and bond prices went up because investors are less worried about inflation."

As a result, he suggested, the selling pressure was transferred to stock and bond prices.

But stock and bond prices later retreated to end little changed on the day.

Both stock and bond prices continued to rise for much of the summer.

But most analysts said the speculation had little effect on stock and bond prices.