Steady as she goes.(Bank of England)

Financial Adviser, August, 2004

THE MPC rarely inflicts major surprises on the money markets, so when the Bank of England's Monetary Policy Committee announces its decision on interest rates today, a further 0.25 basis point rise in the base rate can be expected. Working on the assumption that this expectation proves correct, this will mean an increase in base rates from 4 per cent at the beginning of May to 4.75 per cent in a little over three months.

It is unlikely that there will be many headlines proclaiming delight at a further increase in rates. This is somewhat surprising, as there will be many households across the country that will welcome such an increase. My mother -- like many older people -- will certainly be pleased to see an increase in savings rates, which will help bring her...

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