People BEWARE 6% IR next year looking a real possibility

Hi all,
Increased consumer spending pushed economic growth to its quickest rate in two years in the second quarter of 2006, official data showed on Friday.

The Office for National Statistics said GDP rose 0.8 percent on the quarter and 2.6 percent on the year, unrevised from the initial estimate and in line with forecasts.

The figures are likely to keep intact expectations the Bank of England will raise interest rates again before the end of the year, particularly as price pressures picked up strongly.

The implied deflator rose by 1.5 percent on the quarter, its biggest jump in 15 years.
Thanks
Kai

 

Hi Kai,
I think it?s extremely unlikely. With oil prices falling again inflation will be down a bit more. If banks and lenderws thought this was the case then fixed price mortgage rates would have gone up a bit as well.
Thanks
Theodore