BDO sees higher rates

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BDO Stoy Hayward has gone against many pundits by stating it sees interest rates increasing early next year in order to counteract strong economic growth.

The consultant’s latest monthly Business Trends survey has found most UK businesses are confident of growth next year, which will be the real trigger of counterinflationary action by the Bank of England ”The cooling of the housing market has acted as a signal for many that interest rates have peaked, which has given some firms a false sense of security,” the survey suggests. ”In addition, UK consumer and public spending has remained strong, providing companies with another reason to be upbeat.” There are no expectations the base rate will increase above the current 4.75% level this w...

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