Economic jitters set in at shock interest rate jump

The FTSE 350 index reached an all-time high in early February, while the FTSE 100 climbed to its highest level for six years. Growth has been remarkable in the last two years with stocks outperforming the housing market in both 2005 and 2006. Last year the UK share market returned 17% capital growth, plus dividends, while UK house prices rose just 10%. But early indications suggest that the future is looking less promising for the UK economy, not least because of the increasingly aggressive actions of the Bank of England. The economy is going through difficult times. The shock interest rat...