Inflation rise above expectations...what now for bank rate?

Posted on 19 January 2010 by Drew

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There is a possibility that interest rates could rise sooner than expected after the latest inflation figures showed a larger than anticipated rise to 2.9% in December.  Some of the increase can be attributed to VAT being lower this time last year, but clearly not all of it.

I suspect that the Bank will argue this is temporary, but swap rates - which aim to predict the future of interest rates - have reflected the jump and are showing a bigger chance of an upward movement in 2010.

For borrowers the message is clear.  Being on top of your mortgage and ensuring you get the best independent advice has never been more important.

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