Most city economists believe the quarter-point rise in interest rates on Thursday that is now seen as a certainty will end the present run of increases, despite persistent speculation over further pain to come for borrowers, reports The Times.
Fewer than a quarter of 61 economists polled by Reuters last week are forecasting that this week’s expected base rate rise, to a six-year high of 5.5 per cent, will be followed by another increase. Only 14 of the leading analysts questioned believe that Bank rate will be pushed still higher, to 5.75 per cent, while just one institution, ABN Amro, predicts rates will rise to 6 per cent by next spring. In addition, 28 of the polled economists believe that interest rates will be falling again, and be back to their present level, 5.25 per cent, by this winter or next spring. INVESTMENT BANKS ...
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