Friday 9th March 2007
The current 5.25 per cent base rate of interest may be the peak value reached, according to John Charcol.
Following the Bank of Englands decision to maintain rates at 5.25 per cent this month, the independent mortgage adviser suggested that reduced utility bills may be instrumental in reducing inflation over the coming months.
This, John Charcol argued, could mean an end to interest rate rises after increases in both November 2006 and January 2007.
Ray Boulger, senior technical manager at John Charcol, said: "The combination of last years [utility bill] increases falling out of the year-on-year consumer price index comparison and this years decreases will provide a double benefit to the inflation figures."
However, Lloyds TSB noted that the Bank of Englands monetary policy committee (MPC) may still increase rates in the near future.
Trevor Williams, chief economist at Lloyds TSB corporate markets, claimed that the MPC may be awaiting further information with the publication of this months Budget.
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