Friday 29th June 2007
The Bank of England could raise interest rates in July in light of the number of mortgages recently approved, it is claimed.
Nationwide argues that the buoyancy of the housing market could lead the banks monetary policy committee to increase the base rate before August, with a further rise to six per cent by the end of the year.
Chief economist Fionnuala Earley advises: "Earlier house price data had shown the start of a slowing in the market."
"The fact that todays data shows a bit of a bounce will add to the upside risks being counted up at the Bank of England," she adds.
Previous figures from the Council of Mortgage Lenders showed a slight easing in the amount lent via mortgages in May, although the organisation recognised that the total was still a record for the month.
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