Liberal Democrats in Business

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Interest Rates Will Have To Rise - Cable

2.10.09pm BST (GMT +0100) Wed 8th Aug 2007

Commenting on the Bank of England's quarterly Inflation Report released today, which signals that interest rates are likely to hit 6% by the end of the year, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "There is now a clear consensus that rates will have to rise further due to powerful inflationary forces in the world economy, notably rising energy and food prices.

"The continuing surge in British house prices, driven by rapidly expanding consumer credit, is also causing pressures.

"It seems that the Bank of England will have no choice but to raise interest rates.

"The position of heavily borrowed families with large mortgage obligations is becoming seriously grim. It is difficult to foresee anything other than a continuing rise in the number of people facing repossession and personal bankruptcy."

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[Previous news story]: BAA Must Listen To Residents - Kramer (Mon 6th Aug 2007).
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