Bank chief King hints at 5% rate peak - papers 12th August

Mervyn King, governor of the Bank of England hinted yesterday that in the current economic cycle, one more quarter percentage rate rise to 5% may be enough to settle things. King has amended his inflation and growth forecasts for 2005 so a quarter point increase in interest rates would keep inflation steady at 2% in 2006 - in line with the Bank’s official target. King predicts economic growth to slow in 2005 as consumers and the Government slow down spending which should ease the inflation pressure and avoid the need for further interest rate rises. LIFETIME mortgages, a form of equ...