Threat of interest rate rise grows - papers 21 Dec

News of a record monthly rise in mortgage lending last month, and a CBI report suggesting retailers are enjoying their strongest trading for two years, came just as the IMF said dearer borrowing costs may be needed to counter pressure for higher pay, says the paper. In its annual health check of Britain’s economy, the IMF said signs soaring energy prices may be leading people to anticipate higher inflation, as well as a lack of spare capacity to help to tame price pressures, meant the Bank of England could be forced to push interest rates higher if wage deals accelerate in the year. T...