Thursday, May 10, 2007

UK Interest Rates increase again

Today the Bank of England increased interest rates to 5.5%, this is the highest since 2001.

Interest rate increase at BBC

I have written a short article:
Is it possible the next movement in interest rates is downward?

Many factors suggest that underlying inflation is not a real problem, therefore, these recent interest rate rises may be sufficient to reduce the minor inflation blip.

What do you think? are interest rates likely to keep rising? could this signal the end of the housing boom?

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