Interest rate outlook
The Bank of England voted 7-2 in favour of leaving interest rates unchanged last month, despite much speculation of a rise.Analysts are, however, forecasting a rise next month, after a larger than expected increase in inflation to 3.1%, above the Bank of England’s 2% target.
Lenders are already preparing for the worst with the Alliance & Leicester yesterday withdrawing its current fixed-rate mortgages, in anticipation of interest rate rises next month. It is likely that other lenders will follow suit shortly.
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