UK interest rates raised

Source: Technology Digital

Date :05/07/2007 13:21:16

The Bank of England has raised UK interest rates from 5.5 percent to 5.75 percent – and this may not be the last hike in 2007

Announcing its fifth rate rise since last August, the Bank of England Monetary Policy Committee (MPC) warned that inflation is still a worry, saying: "most indicators of pricing pressure remain elevated".

If this month’s increase does not produce a noticeable effect on high street spending and house prices, then a further rise may be expected to follow later in the year. Strong property price figures released by the largest mortgage provider Halifax on Wednesday added to the pressure on the Bank to make the increase this month rather than delaying, as some analysts thought possible.

The announcement is bad news for house buyers, adding £16 a month to an average £100,000 repayment mortgage. However it will please savers