Investors expect rate hike despite BoE decision

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...