SELL YOUR HOME QUICKLYIMF warns of another possible interest rate hike
The UK government has another 6 months of financial hardship – with slow economic growth and little chance of further interest rate cuts – in store, said representatives of the International Monetary Fund (IMF) on Friday.
According to the report in The Guardian, the IMF’s most recent appraisal of the situation indicates that the UK economy is likely to experience increased difficulty until the end of 2008, before slowly moving toward recovery in 2009.
The report further explained that the UK government will not be able to decrease the current interest rate of 5% until – or unless – taxes increase, the so-called “credit crunch” lessens local demand, or a tighter watch is kept over salaries. The IMF advised the Bank of England to be prepared to increase rates in the event of wage rises placing pressure on inflation.
"Underlying these forecasts is the view that risks of a credit squeeze are being less threatening following various actions, including the introduction of the special liquidity scheme and capital raising initiatives by banks, but that conditions nevertheless remain tight as previous strains persist," said a representative of the IMF.
The spokesperson went further to say: "The broader economic challenges posed by this outlook are reflected most immediately in monetary policy dilemmas – where risks to the credibility of the inflation targeting regime from sustained overshooting of the inflation target have to be weighed against risks to activity from [the] financial sector and other shocks."
Don’t allow the current economic problems to hamper your chances of a property sale – Contact MPG Investments for a guaranteed offer today!
Latest News:
- Homeowners resort to loans to cover rising mortgage costs
- Gloomy outlook predicted for UK housing market
- OECD has bleak economic outlook for the UK
- UK first-time property buyers look abroad
- House prices predicted to fall by 7 percent
- Are UK House prices on the rise?
- Bank of England keeps interest rates steady at 5%
- Consumers buckle under the pressure of rising costs
- Mortgages continue to be scrapped by UK lenders
- UK property market heading for recovery, say analysts
- New EPC legislation: Landlords could face substantial fines
- Mortgage instalments up 78% since 2003
- Lending approvals plummet to lowest level yet
- Mortgage lenders intensify their customer profiling initiatives
- IMF warns of another possible interest rate hike
- The Bank of England denies imminence of a further rate hike
- Northern Rock home loan debt doubles in 3 months
- City-dwellers yearn for quieter country living
- Interest rate cut required to help ease credit crunch
- Experts predict further increases in mortgage rates
