Monday, May 12, 2014

CBI Predicts Early Interest Rate Rise

The Confederation of British Industry (CBI) has warned that, because of rising house prices, the Bank of England may have to raise interest rates in the first three months of next year, before the general election, as opposed to the third quarter previously forecast.

This of course may be all very well if:

1 There were not a general elction in the offing, and

2 The price rises were not mainly be fuelled by London prices.

As such the Bank of England will defer any rate rise until after the election.

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