Friday, March 30, 2007
RICS predicts April rate rise
Another rate hike is likely despite uncertainty over inflation picture.. Although inflation is likely to fall during the next six months, and wage rises have remained subdued, RICS still expect interest rates to rise to 5.5% in May. While there remains uncertainty over the prospects for price changes in the UK in 2008 and beyond, the fear of higher inflationary pressure from abroad and increased price setting power of firms at home, will convince policy makers that interest rates need to rise one more time.