UK economy looking good - NU

Writing on behalf of the company, economist Stewart Robertson said Britain’s economy is in good health and the UK housing market is going from strength to strength. In terms of inflation, Robertson said that following the recent interest rate rise to 5pc, Norwich Union expects rates to increase once more in early 2007 to reach 5.25pc. He acknowledged house price inflation has picked up steadily over the last year, and said it could reach double digits in early 2007. Robertson explained: “The housing market looks set to remain strong for some time, and we do not believe there is m...