Rates remain unchanged but July fears increase for first time buyers

08-Jun-2007

The Bank of England has held interest rates in the UK at 5.5 per cent, it has been announced, but industry opinion is increasingly predicting a rise to 5.75 per cent in July.

House price growth have been tempered by four interest rates since August, a host of recent figures have shown, but inflationary pressures remain and could force the Bank to act again next month, it has been claimed.

Speaking to the BBC, economists suggested that a July rise was looking increasingly likely.

"We suspect that another 25 basis point hike to 5.75 per cent could arrive as soon as July," commented Global Insight economist Howard Archer.

"Interest rates are going higher and we suspect that they will get to 5.75 per cent in July," added ING's James Knightley.

Economists from the Royal Institution of Chartered Surveyors have recently gone further and said that a rise to six per cent was now "in sight"

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