When asked whether there will be another rate rise in the first quarter of 2007, 70% of participants think there will be, with 19% anticipating no change. The industry seems to be divided in its opinion as to whether or not another rise will take place in the near future.
Industry experts have been having their say in the trade press. Louise Cuming, head of mortgages at moneysupermarket.com, said: “In 2007 I expect interest rates will rise briefly but go no higher than 5.5 per cent, and will fall back by the end of the year.”
Ray Boulger, senior technical director at John Charcol, believed not: “Governor Mervyn King’s comments in his recent appearance before the Treasury Select Committee gave no encouragement to the view that Base Rate would rise again any time soon. Factors suggest the Monetary Policy Committee will be prepared to wait some months to see the impact of the two recent rises before seriously considering another increase.”
Pink’s marketing manager Neil Hoare thinks that the market anticipated the recent rise some weeks in advance but there appears to be few signals that another rise is imminent: "If there is to be a change, then I would not expect to see any indication until the high street has finished its analysis of consumer spending over the Christmas break and the first round of wage negotiations have been completed."
