Mortgage lender Nationwide is predicting that interest rates in the UK will now peak at 5.75pc as the threat from a slowdown in the US economy increases and inflation eases, The Telegraph reports.
The forecast came despite the lender's latest survey revealing that house prices climbed an average of 0.6pc across the UK this month, up from 0.1pc last month. However, the annual rate of inflation slowed to 9.6pc from 9.9pc. The Bank of England, which has said very little publicly during the past month's financial turmoil, indicated in its quarterly inflation report at the start of August that interest rates would need to rise to 6pc to keep inflation in check over the next two years. CHEYNE CAPITAL MANAGEMENT is pleading with investors for a stay of execution for its structured in...
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