UK interest rates ‘could rise faster than expected’

<p>The UK interest rate could be set to rise.</p>

Interest rates in the UK could be increased earlier than expected, it has been claimed.

The Bank of England's Monetary Policy Committee announced today (September 5th) that it is holding UK rates at 0.5 per cent for another month.

But Simon Collins, of leading independent mortgage adviser John Charcol, explained that a spike in swap rates has led to fears that the bank rate may rise slightly sooner than predicted.

This is despite the fact the new governor of the Bank of England Mark Carney has stated that the committee is not going to consider raising rates until unemployment in the UK drops to seven per cent.

Mr Carney took over the position from predecessor Sir Mervyn King earlier this summer.

Commenting on interest rates being held for another month, Barry Naisbitt, chief economist at Santander UK, stated that it was "highly unlikely" anything other than the status quo being maintained would occur at this month's meeting.

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