"The Easy Way to Get Your Best UK Mortgage"



Bookmark This


Google Feeds


Yahoo Feeds


AOL Feeds


Newsgator Feeds
About Us
Your Privacy
Contact Us
Tip Our Charity
This website is Approved by Cradon Investments Ltd Authorised and Regulated by
the Financial Services Authority FSA No: 300505


TrustGuard

UK Interest Rates Forecasts and Predictions for Home and Property in the UK at 23rd February 2007

UK Interest Rate: 5.25%

UK Interest Rates Forecast: Further 0.25% rise still likely in Q1/Q2 2007

Inflation Drops by 0.3 per cent

Inflation dropped from 3 per cent to 2.7 per cent in February, according to the Bank of England's latest quarterly inflation report.

The bank's Governor, Mervyn King, suggested that expected falls of up to 20 per cent in gas and electricity prices might help reduce inflation still further this year, but indicated that he was still concerned about medium-term threats to low inflation, saying that, "just as 3 percent inflation did not mean the end of the world is nigh, so 2.7 percent does not mean we can ignore concerns about the inflation ahead."

Further Interest Rate Rise Still Likely

Although inflation has dropped somewhat, the Bank of England's inflation forecasts suggest that hitting their target of 2% CPI inflation in two years could still require a further rise in interest rates to 5.5 per cent.

Strong overall growth and inward investment were cited by the bank as factors that could continue to place upwards pressure on inflation. However, Mervyn King emphasised that any future interest rate decisions are not a done deal and were in fact more uncertain than usual.

Analysts were also divided over future interest rate decisions, with many suggesting that the outcome of current wage negotiations could still have a significant effect on the likelihood of one further rise in interest rates.

Vicky Redwood, of Capital Economics said she believes that "...one more rise in interest rates in the next couple of months is probably more likely than not." This sentiment was echoed by Howard Archer of Global Insight who commented that "…we still think interest rates will reach 5.50%, but this should prove to be the peak."


Click here to go to the Home page and find out more information about UK Mortgages, UK Mortgage Quotes, UK Morgage Finance, Interest only mortgages (even with bad credit) or Home Insurance Policies Quote.



[improve this article]

Browse over 200 Free Mortgage Tips

Your Complete Guide to UK Mortgages

Find Out How to Win the Race to Buy Your Home - Home Buyers Guide

How to Sell Your Home

Learn How to Save ££s by Remortgaging

Read the Insider Info on Home Insurance

Best Buy UK Mortgage Tables

UK Mortgage Calculators

UK Mortgage Quotes

First Time Buyers

Self Employed Mortgages

Bad Credit Mortgages

Overseas Mortgages

Common Questions / FAQs

Mortgage Definitions

Mortgage Lenders UK List

LATEST MORTAGE UK NEWS

Site Help

About Us

Your Privacy

Contact Us

HELP

Mortgage Guide Site Map

Tip Our Charity