| The Bank of England Monetary
Policy Committee announced an increase in the base rate by 0.25% from
4.50% to 4.75%.
Andrew Levers, Director of The Lagoon Group said:
“This is the first interest rate rise in 12 months. It had been somewhat
predicted - slowing economies forecasts in the UK and US plus mounting
uncertainty in the middle east and oil prices all contributed to the decision.
UK house prices have also started to edge up again after a period of stagnation.
It seems inflationary pressures were the main driving force”
The interest rate rise had an immediate effect on the currency markets
with the pound predicted to edge towards the two dollar mark as UK currency
dealers see an opportunity to invest in higher yielding UK markets.
Mortgage lenders are expected to adjust mortgage rate with immediate effect.
The last three years Bank of England interest rate changes are:
03/08/2006 - 4.75%
04/08/2005 - 4.50%
05/08/2004 - 4.75%
10/06/2004 - 4.50%
06/05/2004 - 4.25%
05/02/2004 - 4.00%
06/11/2003 - 3.75%
10/07/2003 - 3.50%
06/02/2003 - 3.75%
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