A new report has said that the Bank of England could raise interest rates as many as three times next year.
The Organisation for Economic Co-operation and Development (OECD), has said the cost of borrowing could rise to 5.5 per cent in 2005.
"The slowdown and continuing low inflation warrant a pause in monetary tightening, although further tightening may be needed during 2005, in particular due to increasing pressures from the labour market," the report states.
If base rate rises, mortgage and general lending would become more expensive, while savers would be rewarded.To find out how to protect against future rate rises and take out a fixed rate mortgage, click here.
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