Saturday, Apr 21, 2007
More fears about pending rate rise
FT: Rate rise expected to put lid on house price growth
Economists predict interest rates will be raised once more this year to 5.5 per cent as the Bank of England looks to continue to curb inflation in the economy.
Such a move would compound the effects of the surprise decision to raise rates this week, which is likely to send small tremors through the property market and put pressure on housing prices, analysts predict.
Posted by cash_buyer @ 09:42 AM (139 views) Add Comment
3 Comments
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1. Whiteknight said...
5.5% is about 3% below the rate required. I thought this was clear to all and sundry now.
Obviously not. I am aware that the market is betting on where the MPC will put rates and not where they "should be".
However, there is the digital shift point as even the incorrect official figures will spike some more and people such as teachers will demand their wages follow REAL inflation as they feel it in their pockets and not even the higher RPI inflation figure.
There is also the inflationary reflect of the final collapse in pounds sterling to consider.
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3. Pixel8 said...
This is old news