Further interest rate rises predicted

27 June 2007
Eighty per cent of brokers predict further rate increases, according to a report by Birmingham Midshires (BM).

BM Solutions' One Specialist survey asked 200 intermediaries what they believed the final outcome of the monthly rate decisions throughout the year would be, and eight out of ten said that they expect rates to hit 5.57% by the end of the year.

And June’s Monetary Policy Committee minutes suggested that around 30% of brokers think rates could rise to 6% at the start of 2008.

Iain Williamson, head of key accounts, BM Solutions said, "Following the release of June's MPC minutes last week, there's a strong expectation that we'll see another rise in July. This research suggests that brokers don't expect this to be the last move in 2007.

"They're clearly being realistic about the market and are best placed to advise their clients in light of any changes. Whatever the direction or extent of rate rises, brokers can be sure that that we'll continue to support them with market leading products and five star service."

Find out more about Birmingham Midshires and Interest Rates