Simon Rubinsohn, chief economist at stockbroker Gerrard, says the Bank of England is unlikely to raise rates in the next two months.
Instead, it will look to the latest retail lending figures as evidence its rates increases are biting sufficiently to avoid further immediate increases. The Bank’s latest figures show a decrease in total and secured lending, and in the number of mortgages approved. Remortgaging continues to be strong, perhaps because borrowers are looking to lock in fixed mortgage rates in light of the threat of further rates increases, Rubinsohn says. However, there is little evidence of a strong rebound in retail sales, which have experienced a sharp drop-off over the past month, Rubinsohn adds. ...
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