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Wall Street Journal - Signals Point To Uk Interest Rate Rise

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http://online.wsj.com/article/SB1146792665...=googlenews_wsj

Signals Are Starting to Point

To a Rise in U.K. Interest Rates

May 5, 2006

The next move in overnight U.K. interest rates is likely to be upward. That may not be clear from the Bank of England's decision Thursday to keep the rate steady at 4.5%. But the futures market has caught on. It is counting on a 0.25-percentage-point increase before year's end.

It's a big change from a few months ago, when many economists were expecting rates to be cut. But back then growth was slow -- a 1.8% rate in the fourth quarter of 2005 -- and unemployment was rising. The job market hasn't yet turned around, but the business mood certainly has. Both the manufacturing and service sectors haven't been so cheerful since 2004, according to this week's surveys. Read on by clicking through...

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http://online.wsj.com/article/SB1146792665...=googlenews_wsj

Signals Are Starting to Point

To a Rise in U.K. Interest Rates

May 5, 2006

The next move in overnight U.K. interest rates is likely to be upward. That may not be clear from the Bank of England's decision Thursday to keep the rate steady at 4.5%. But the futures market has caught on. It is counting on a 0.25-percentage-point increase before year's end.

It's a big change from a few months ago, when many economists were expecting rates to be cut. But back then growth was slow -- a 1.8% rate in the fourth quarter of 2005 -- and unemployment was rising. The job market hasn't yet turned around, but the business mood certainly has. Both the manufacturing and service sectors haven't been so cheerful since 2004, according to this week's surveys. Read on by clicking through...

I hope interest rates do go up, and WSJ is a more authoratitive source of opinion than Malta Times or Wales on Sunday or whatever. But, sad to say, the reason for the forthcoming hike, if it materialises, seems to be that house prices are going up . . .

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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