The Organisation for Economic Cooperation and Development has warned today (16th May 2010) that the Bank of England must raise interest rates by the end of this year to keep inflation in check according to an article written in The Times.
The Bank of England has struggled to curb inflation which is currently at 3.7%, and is higher than the governments target of 2%.
With interest rates at a low of 0.5%, OECD says that interest rates should rise to 3.5% by the end of next year to keep inflation in check. This would mean mortgage borrowers would see there monthly payments soar.
To read the article in full follow the link: http://business.timesonline.co.uk/tol/business/economics/article7136901.ece
