Higher Interest Rates not so Likely

News that the recent MPC committee only narrowly voted for a rate rise, suggests the likelyhood of the next rate rise is unlikely to be up. The final vote was 5-4 with Mervyn King casting the final vote in favour of a rate rise. Mervyn King also made an uncommon prediction about future inflation. He states he believes that inflation is likely to fall in the second half of the year. - Possibly quite sharply. This will come as good news to UK homeowners as it makes future interest rates harder to justify. However there is still evidence the UK economy is performing robustly with economic growth above long run trend rate of growth.

See state of UK economy in 2007

Bank split on January vote

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