Thursday, July 20, 2006

Hawkish economists expect rates to rise as early as next month

High Street piles pressure on rates

The Office for National Statistics (ONS) said retail sales rose at a higher than expected 0.9% in May. Economists has expected 0.2%. David Page an ecomomist at Investec said, "We had pencilled in an August rate hike and, if anything, this number makes our view slightly firmer". The HSBC ecomomics team believe the data will not be sufficient to sway the MPC who they say will treat the data with an eye on a possible World Cup effect.

Posted by denzil @ 12:06 PM (564 views)
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2 thoughts on “Hawkish economists expect rates to rise as early as next month

  • Bubbles. . . . says:

    Come on Gordon wont let intrest rates rise at all…If they do he knows it will have an effect on houses, and jobs. He needs houses to continue rising so he can get more stamp duty! Also more inheritance tax as now more and more people are in that bracket because of the rise in HPI, and jobs to keep payin the mortgages and taxes he has bestowed upon us.. At least it makes a contribution towards his shortfall…..
    Just hope with everyone else rising their intrest rates the pound doesnt fall…If it does I also hope Gordie doesnt sell the rest of our gold in a panic to support the pound!! Big mistake last time…

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  • Total UK debt of £1.191trillian.
    UK population £60441457.
    Average Debt: £19705.02 per person.

    Average £50 extra per person per year to service their debt for a 0.25% rate rise, which individually shouldn’t affect many people.

    The £50 average add up to approximately £3billion accumulatively to service the total debt. Money that’s removed from the high street.

    Rate of 4.5 increases to 4.75 that’s a 5.5% rise on the servicing of the majority of loans.

    House prices would have to fall 5.5% to be as affordable next month as they are this month and house prices are barely affordable now.

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