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| Version 5 | Version 6 |
|---|---|
| Bank expected to raise UK rates | Bank expected to raise UK rates |
| (about 1 hour later) | |
| The Bank of England is expected to raise UK interest rates from 5.5% to 5.75% shortly, as it resumes its efforts to reduce inflation. | The Bank of England is expected to raise UK interest rates from 5.5% to 5.75% shortly, as it resumes its efforts to reduce inflation. |
| Most economists predict a rise after Bank governor Mervyn King said recently that inflation remained a concern. | Most economists predict a rise after Bank governor Mervyn King said recently that inflation remained a concern. |
| They also point to the fact that while rates were kept level in June, four of the nine members of the Bank's Monetary Policy Committee voted for a rise. | They also point to the fact that while rates were kept level in June, four of the nine members of the Bank's Monetary Policy Committee voted for a rise. |
| However, a minority of analysts feel rates may remain on hold for July. | However, a minority of analysts feel rates may remain on hold for July. |
| HAVE YOUR SAY There are many of us who lived through much higher interest rate periods than this Denis, Leeds Send us your comments class="" href="http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml">What it means for mortgages | |
| These economists point out that while the most recent figures showed that inflation remained above the government's 2% target, it did actually slow to 2.5% in May from 2.8% in April. | These economists point out that while the most recent figures showed that inflation remained above the government's 2% target, it did actually slow to 2.5% in May from 2.8% in April. |
| Debt worries | Debt worries |
| The Bank will announce its latest rate decision at midday. | The Bank will announce its latest rate decision at midday. |
| A rise in interest rates from 5.5% to 5.75% would put an extra £16 a month on an average £100,000 repayment mortgage, but it could be good news for savers, who should receive more for their investments. | A rise in interest rates from 5.5% to 5.75% would put an extra £16 a month on an average £100,000 repayment mortgage, but it could be good news for savers, who should receive more for their investments. |
| The Bank has increased rates four times since last August and charities have expressed concern that another increase could leave many borrowers facing difficulties. | The Bank has increased rates four times since last August and charities have expressed concern that another increase could leave many borrowers facing difficulties. |
| "We're seeing more and more people coming in for help with mortgage or secured loan arrears," said Sue Edwards from Citizens Advice. | "We're seeing more and more people coming in for help with mortgage or secured loan arrears," said Sue Edwards from Citizens Advice. |
| "People are really stretching themselves to the limit to buy a house and take on a mortgage, so a small increase in interest rates could just tip them over the edge," she told the BBC. | "People are really stretching themselves to the limit to buy a house and take on a mortgage, so a small increase in interest rates could just tip them over the edge," she told the BBC. |
| Mixed housing signals | Mixed housing signals |
| There is some dispute about the strength of the housing market. | There is some dispute about the strength of the housing market. |
| While the Halifax revealed on Wednesday that UK house prices rose 0.4% in June, Land Registry figures showed that the price of flats, as opposed to houses, in most parts of the England and Wales were now falling slightly. | While the Halifax revealed on Wednesday that UK house prices rose 0.4% in June, Land Registry figures showed that the price of flats, as opposed to houses, in most parts of the England and Wales were now falling slightly. |
| Philip Shaw, chief economist at Investec, said that an increase to 5.75% at this month's meeting was definitely the most likely outcome. | Philip Shaw, chief economist at Investec, said that an increase to 5.75% at this month's meeting was definitely the most likely outcome. |
| "We have long argued that the committee would be unlikely to wait until the next Inflation Report in August to tighten again," he said. | "We have long argued that the committee would be unlikely to wait until the next Inflation Report in August to tighten again," he said. |
| "Does this view look correct? We very much think that it does." | "Does this view look correct? We very much think that it does." |
| However, Howard Archer, chief UK economist at Global Insight, said it remained "far from certain" that rates would go up in July. | However, Howard Archer, chief UK economist at Global Insight, said it remained "far from certain" that rates would go up in July. |