Sixth rate rise due by Autumn
Bank governor signals more bad news ahead
A further interest rate rise should be expected as early as the Autumn
despite borrowers being crippled by five increases in the last 12 months.
governor Mervyn King warned of the precarious state of family finances as
personal debt reached £1.3tn.
Despite this his hand is likely to be forced by rising oil and food prices
pose that pose an inflationary threat.
Bank’s Monetary Policy Committee has to set interest rate policy to ensure
inflation is in line with the government’s target of 2% – the Consumer Prices
Index measure of inflation hit 3.1% in March, its highest figure for a decade.