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Interest Rate Rises

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UK interest rates are low in absolute terms and low by comparison with other countries. In the past, our high interest rates were linked excessive public spending. During the the early 90s however, we started to lose this reputation at the same time that world interest rates were creeping down. A double benefit.

It would seem that we are back to our bad old habits and doubtless we will be rated accordingly by the markets. This comes at the same time that world interest rates are on the rise. A double whammy

One can see how interest rates could rise by 4% or more if our old ratings are restored during a period of world increases.

Edited by dog

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