BUTTERBALL
East Stand Brighton Boyz
....to rise 0.25% 
UK News
Homeowners will feel the bite Shock Rate Decision
Updated: 13:01, Thursday August 03, 2006
Homeowners have been dealt a blow after the Bank of England surprised everyone with a decision to raise the interest rate.
It is the first time in a year that the rate - which has risen to 4.75% - has moved.
The decision is likely to cost homeowners with an average £80,000 mortgage just over £12 a month.
The rate has gone up by 0.25% from its present 4.5% level because of fears of a rise in inflation which this month reached 2.5%.
The Bank's Monetary Policy Committee has a remit to ensure that, over a two-year period, inflation is kept at 2%.
In a statement, the Bank said the pace of economic activity had quickened in recent months.
"Household spending appears to have recovered from its post-Christmas dip. Business investment growth and investment intentions have also picked up," it said.
The statement added that a hike was necessary to bring inflation back to target in the medium term.
Soaring gas and electricity bills in June drove inflation to its highest rate since Labour came to power in 1997.
In addition, recent figures indicated that the UK economy grew by more than expected between April and June.
The preliminary estimate of GDP showed a figure of 0.8% for the second quarter, slightly higher than most City expectations and stronger than the 0.7% rise seen in the previous two quarters.
However, other indicators, including the latest services sector survey, had indicated that growth may be slowing.
UK News
Homeowners will feel the bite Shock Rate Decision
Updated: 13:01, Thursday August 03, 2006
Homeowners have been dealt a blow after the Bank of England surprised everyone with a decision to raise the interest rate.
It is the first time in a year that the rate - which has risen to 4.75% - has moved.
The decision is likely to cost homeowners with an average £80,000 mortgage just over £12 a month.
The rate has gone up by 0.25% from its present 4.5% level because of fears of a rise in inflation which this month reached 2.5%.
The Bank's Monetary Policy Committee has a remit to ensure that, over a two-year period, inflation is kept at 2%.
In a statement, the Bank said the pace of economic activity had quickened in recent months.
"Household spending appears to have recovered from its post-Christmas dip. Business investment growth and investment intentions have also picked up," it said.
The statement added that a hike was necessary to bring inflation back to target in the medium term.
Soaring gas and electricity bills in June drove inflation to its highest rate since Labour came to power in 1997.
In addition, recent figures indicated that the UK economy grew by more than expected between April and June.
The preliminary estimate of GDP showed a figure of 0.8% for the second quarter, slightly higher than most City expectations and stronger than the 0.7% rise seen in the previous two quarters.
However, other indicators, including the latest services sector survey, had indicated that growth may be slowing.
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