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Wednesday, November 05, 2014

Interest rates rise pushed back to June?

It has all been relatively quiet on the interest rate 'will they/won't they' rise debate.
The National Institute of Economic and Social Research have chirped up, and following their down beat assessment of the UK economy, they've pushed back their forecast date of an 0.5% interest rate rise, from February to June next year.

This makes sense to me. The Government will be very resistant of any rise until the election has passed. 

The NIESR explained their change of heart, 

“Recent weak inflation numbers appear to have alleviated the pressure to tighten monetary policy. On balance we think the risk of waiting a few more months to start raising interest rates outweighs the risk from a premature tightening.”

With the housing market having cooled in the past two months the pressure on a rate rise seems to be thankfully easing, however it's still only a matter of time. 

Those landlords who haven't sorted their borrowing need to hurry to get themselves ready for those inevitable rises - they'll be coming around the mountain....

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