Friday, July 6, 2007
The Truth by Vince Cable (MP)
Commenting on today’s interest rate rise, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "Today’s interest rate rise is almost certainly not the end of rising rates, thanks to the Bank of England allowing the expansion of credit and the bubble in the housing market to get out of control."A painful correction would be paid for by millions of families struggling with mortgage payments. "We are already seeing rising repossessions and insolvencies. This will only get worse as previous rate rises start to bite, especially with more than a million people coming off fixed rate mortgages in the coming months. "We face the possibility of falling house prices and negative equity last seen in the late 1980s.