Bank of England hints at six per cent interest rates
Thu 9th Aug, 15:20:07 BST
Prospective homeowners and those with mortgages have been advised to prepare for a further rise in interest rates.
According to the research firm Global Insight, the latest report from the Bank of England points to rates going up again in the near future in order to bring the rate of inflation down towards the bank's target of two per cent.
Howard Archer of Global Insight said: "On balance, the Quarterly Inflation Report reaffirms our belief that interest rates will rise to six per cent in October or November.
"We suspect that the Bank of England will keep interest rates at six per cent for an extended period."
However, in a press conference held to coincide with the release of the report, the Bank of England's governor Mervyn King warned against drawing any definite conclusions from the findings.
"This report is not intended to signal anything about interest rates in the future," he said.
"It is intended to give some guidance about our thinking about the economy."
According to the research firm Global Insight, the latest report from the Bank of England points to rates going up again in the near future in order to bring the rate of inflation down towards the bank's target of two per cent.
Howard Archer of Global Insight said: "On balance, the Quarterly Inflation Report reaffirms our belief that interest rates will rise to six per cent in October or November.
"We suspect that the Bank of England will keep interest rates at six per cent for an extended period."
However, in a press conference held to coincide with the release of the report, the Bank of England's governor Mervyn King warned against drawing any definite conclusions from the findings.
"This report is not intended to signal anything about interest rates in the future," he said.
"It is intended to give some guidance about our thinking about the economy."
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