Liberal Democrats in Business

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ADDITIONAL RATE RISES WILL SQUEEZE HOUSEHOLD BUDGETS FURTHER - CABLE

1.50.53pm BST (GMT +0100) Wed 9th Aug 2006

Commenting on the Bank of England's quarterly report, which predicts further interest rate rises, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "Today's report provides heavy hints that interest rates are set to rise in the future.

"This will have serious consequences for household budgets, which are already being stretched by rising fuel prices and council tax bills."

Responding to, Governor of the Bank of England, Meryvn King's comments on first time buyers, Dr Cable said:

"These comments further underline the folly of not including house prices in the official measure of inflation."

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