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Telegraph Online: Bank Warns Of Interest Rate Rise

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Bank warns of interest rate rise

By Edmund Conway, Economics Editor (Filed: 11/05/2006)

The Bank of England is poised to raise interest rates, after warning that inflation and debt levels are still rising and that house prices are overvalued.
For the first time in well over a year, the Bank indicated that borrowing costs must soon be lifted from their current level of 4.5pc.
In its closely watched Inflation Report yesterday, the Bank also trimmed its growth forecasts slightly, and indicated that the consumer price index will jump as high as 2.5pc in the coming year as a result of higher gas and electricity bills. Most strikingly, Mervyn King used the opportunity to deliver another warning to the housing market and debt-pressed households.
The Governor warned that the recent pick-up in the property market, which has seen house price inflation rise from beneath 5pc to more than 8pc, had taken the Bank by surprise, but that it could be short-lived.

Short lived HPI and higher rates :lol:

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  • 312 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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