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UK Interest Rates Expected To Remain At 5%

The puzzle which is the future direction of UK interest rates is unlikely to become any clearer when the Bank of England meet later this month. A recent poll of 71 analysts saw a resounding 69 voice the opinion that rates will remain unchanged this month, with only 2 expecting a reduction in the headline rate. The main problem seems to be the continuing rise in inflation which is nudging towards the 4% level and looking as though it will pass through this summer.



As a number of experts have claimed, the Bank of England affectively has its hands tied because of the threat of increased inflation, despite the fact the economy is faltering and house prices are moving lower each month. This really is a doomsday like scenario for the UK authorities, desperate to reduce rates and try to stimulate the economy, while knowing that the devil of inflation is loitering with intent.



Quite how this will all pan out is anybody’s guess at the moment but it seems as though the situation will get worse before it gets better, something which does not bode well for home owners who are already struggling.

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