As predicted by some months ago, The Bank of England has raised interest rates for the second time in three months. Base rates have been increased by a further 0.25% taking rates from 3.75% to 4%
Our View
With average house prices still rising by over £2,000 per month and consumer spending going through the roof over Christmas - this was no suprise to us or many other commentators.
Expect rates to possibly go up by a further 0.75% by the end of this year and another 1% by the end of 2005. You have been warned - do not take on any further debt or mortgage borrowing unless you really can afford a 1 or 2% increase over the next few years.
Check out our news archive on interest rates predicting all these rises.