Economists still expect interest rates to rise by next month even after the minutes of the last Monetary Policy Committee meeting show just one of the nine votes went in favour of a rise.
That lone vote, which was for a 25 basis points increase on the 4% UK base rate is expected to be heard early next month because of continued strong house price increases. The minutes talk of a link between house price inflation and domestic consumption. ”Household spending seemed likely to remain buoyant in the near term, and might also be supported by the strength of the housing market,” the minutes state. Yet at the same time, the MPC admits the strength of the connection between consumption and house prices is uncertain. If the link is firmed up by next month the committee's ha...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
