Qualified advisers answering your
Financial Questions
call 0800 092 1245

King refuses to rule out interest rate hike

Bank of England governor Mervyn King has flown in the face of speculation by experts that interest rates will hold in April by warning that borrowing cost increases are still on the cards.Speaking to the Treasury Select Committee, Mr King said that the historically low interest rates must rise again to combat the 16-year high of inflation. The governor told MPs: "The committee will continue to monitor carefully the risks to inflation as they unfold and it remains ready to take whatever action might be necessary to keep inflation on track to hit the target." Mr King said that the threat of inflation was still large despite welcoming recent announcements of cuts to domestic energy bills and fall in the rate of growth of credit card borrowing.Economists have responded by saying that they fully expect a rate rise in May, but now acknowledge that an increase in April is not inconceivable.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details