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Interest rates set to rise

Last Modified: 16 May 2007
By: Faisal Islam

Another rise in interest rates looks likely in the next few months, after the Bank of England today released its latest assessment of the economy.

No fancy dials or video screens in the meeting room of the monetary policy committee of the Bank of England - but you might call it the control deck of the British economy.

But for exactly 10 years, base interest rates, the economy's speed limit, if you like, have been decided by a monthly vote of nine economists and bankers, in that room. And they're now hitting some turbulence.

The ink barely dry on a letter Mervyn King, Governer of the Bank of England had to write to the Chancellor to explain why inflation was above its target. Some relief to borrowers then when inflation fell back yesterday. But only until today's publication of the Bank's Inflation report.

Source:
http://www.channel4.com/news/articles/business_money/
interest+rates+set+to+rise/514187

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