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UK Interest Rates Forecasts and Predictions for Home and Property in the UK at 20/10/06

UK Interest Rate: Unchanged

UK Interest Rates Forecast: 0.25% increase in November

The publication of the minutes of the Bank of England's Monetary Policy Committee October meeting have reinforced expectation that interest rates will rise by a 0.25% to 5% in November.

Two of the seven members of the MPC voted for an increase in October, with the remaining five members showing support in principle for a future rise to try and dampen above-target inflation before the end of the year.

It's hoped that a timely rise in interest rates now will prevent excessive upwards pressure on wages, and avoid the need for more significant rate rises next year.



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