06-06-2007
Interest rate rise expected
Britain's interest rates are likely to rise further before the end of 2007, a new survey has revealed.
According to the results of new study of 58 economists by Reuters, a majority (51) are of the opinion that interest rates will rise by at least 25 basis points before the final quarter of this year, reports Reuters.
However, five respondents voiced their expectation that interest rates would increase to 5.75 per cent on Thursday, when the Bank of England makes its interest rate announcement for June.
"We may well see a rate rise before the summer is out, but a move this month is highly unlikely," said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.
"We've seen rates increased four times since August last year and the effects of these are only just starting to show through," he added.
The poll was conducted between June 1st and 4th.
