06.05.2004

Bank lift interest rate by a quarter

As widely expected the Bank of England raised the UK base rate to 4.25 percent today. House price inflation whcih shows no signs of abating and the overall growth rates in the UK economy, expected to hit 3.5 percent this year, were behind the increase.

Rates are predicted to continue to rise with 4.75 to five percent being likely by year end. The current upward trend in the base rateis expected to peak between five and five and a half percent before falling back.