The Bank of England's decision to hold interest rates has not dampened anticipation among investors there will be another hike before the end of 2007, according to Barclays Stockbrokers.
The investment firm quizzed 743 investors and found 87% believe interest rates will rise again following last month’s 0.25% increase to 5.5%. According to Barclays, 45% of those who anticipate an increase this year expect rates to reach 6%, whereas 41% believe interest rates will finish the year at 5.75%. Pressure is on the Monetary Policy Committee - the Bank of England group charged with the job of setting the base rate each month - to up interest rates to quell both the relentless property boom and rising inflation, which topped three per cent earlier in the year. Henk Potts, equity a...
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