Rate rise hits property market but benefits equity investors

UK markets took a hit last month following an unexpected 0.25% rate rise to 4.75% by the Bank of England (BoE). However, in its quarterly inflation report released on 9 August, the BoE states the rate rise was necessary to bring CPI inflation back to the 2% target in the medium term, having reached 2.5% in June. It says: "The Monetary Policy Committee (MPC) noted that, under the assumption official interest rates are to rise in line with market yields, the central projection should be for output growth to remain close to its recent historical average and for inflation to move a little h...