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Businesses warned of predicted rate rise
18/04/2007
An economist has warned the business world that interest rates are likely to be raised in order to curb inflation.
Speaking on Channel 4 News, an adviser to Deloitte suggested that UK industry will no longer be able to have its "cake and eat it" as the recent trend of a low base rate combined with solid growth levels is coming to an end.
Roger Bootle asserted that a continuation in the current states of economies both here and abroad could lead to a decision from the monetary policy committee to raise interest rates next month.
"We have had a period of low interest rates and inflation has remained benign," remarked Mr Bootle.
He added: "I think that some of that is starting to unravel."
Meanwhile, this week's increase in the pound against the dollar could provide UK businesses with a double-edged sword, according to an analyst from the Confederation of British Industry.
Ian McCafferty told the Guardian that the pound's proximity to the $2 rate will mean goods such as oil and metal become cheaper to import for British companies, but exporters may find themselves under pressure to remain competitive.
Speaking on Channel 4 News, an adviser to Deloitte suggested that UK industry will no longer be able to have its "cake and eat it" as the recent trend of a low base rate combined with solid growth levels is coming to an end.
Roger Bootle asserted that a continuation in the current states of economies both here and abroad could lead to a decision from the monetary policy committee to raise interest rates next month.
"We have had a period of low interest rates and inflation has remained benign," remarked Mr Bootle.
He added: "I think that some of that is starting to unravel."
Meanwhile, this week's increase in the pound against the dollar could provide UK businesses with a double-edged sword, according to an analyst from the Confederation of British Industry.
Ian McCafferty told the Guardian that the pound's proximity to the $2 rate will mean goods such as oil and metal become cheaper to import for British companies, but exporters may find themselves under pressure to remain competitive.