INTEREST rates could rise a further 50 basis points by the end of the year, commentators have predicted in the wake of today's increase to a six-year high of 5.5pc.
The Bank of England Monetary Policy Committee’s decision to push the base up by a further 0.25pc was widely anticipated by economists. While most agree the figure will be sufficient to rein inflation in, some experts have forecast further rises and even the return of negative equity in the housing market. Jon Maguire, chief executive of cru Investment Management, said: “The Bank of England is chasing inflation and therefore I would not be surprised if interest rates go up to 6% by the end of the year. "2008 could get even worse and it wouldn’t surprise me if the housing market cra...
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