Inflationary pressure from the housing market, consumer slowdown and uncertainty surrounding the general election make an interest rate rise in June increasingly likely, according to a new report.
The latest BDO Business Trends Report, released yesterday, says an interest rate hike in June is now more likely after business optimism fell for the first time in a year and inflationary pressures finally subsided, after a two-year increase. The report goes on to say the Bank of England’s Monetary Policy Committee could be tempted to raise interest rates when it meets on 9 May. The fact the May meeting coincides with the Bank’s quarterly inflation index and a rate rise would no longer disturb an election campaign, would make this meeting an attractive opportunity for a rate rise, it a...
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