Future base rate rises would be ‘over zealous’
A further rise to interest rates would be "unnecessary", it has been suggested.
According to Stuart Law, managing director of property investment firm Assetz, the Bank of England does not need to increase the base rate beyond 5.5 per cent in an attempt to curb house price inflation.
However, if it were to do so consumers could well find their attempts at debt management and making secured and home loan repayments squeezed.
Mr Law said: "It is unnecessary for the Bank of England to raise interest rates again to bring consumer price index (CPI) inflation back down to two per cent, as signalled by Mervyn King."
He suggested that CPI is set to drop below the two per cent barrier by September.
Yesterday, chief economist for Lloyds TSB Trevor Williams claimed that most Britons were prepared for the effect last week’s base rate rise would have on their personal loan repayments.
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