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Recent rate rises shake Brits' security

People in the UK have told Lloyd's TSB's monthly survey team that they expect a further hike in the interest rate in 2007.According to Lloyd's Corporate Markets poll, 77 per cent of Brits expect another creep in the interest rate, while 13 per cent believe the rate will stay the same and an optimistic seven per cent expect the rate to fall.Because of expectations of a higher interest rate, more people are worried about their job security, with two per cent less feeling safe in their job than last year after the recent rate rises. Since the increases in the interest rate 63 per cent of consumers have noticed the rise in high street prices as manufacturers pass augmented costs on to the public.Trevor Williams, chief economist, Lloyds TSB Corporate Markets, said: "Last month's interest rate rise did little to convince consumers that rates had reached a peak. In line with the prevailing opinion of the financial markets, consumers believe rates will increase further this year. "We're just beginning to see the impact of May's rate rise on consumers with sentiment on job security and prices starting to cool. Even so, there is still some way to go before the Bank of England will be reassured; they have emphasised that for inflation to stay low, inflation expectations must be anchored at low levels."

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