UK, Euro interest rates to rise in '07 - Barings

Further interest rates rises are likely in the UK and Europe this year, according to Andrew Cole, di...

Further interest rates rises are likely in the UK and Europe this year, according to Andrew Cole, director of asset allocation at Barings. Despite the latest UK interest rate hike, the poor inflation report has signaled more increases will follow, Cole believes. “The market has now moved to discount UK short rates at 6% by the end of the year. Most economic data has been quite firm, but pressures are building on consumer balance sheets and this threatens the UK residential property market.” Cole also believes the European Central Bank is unlikely to stop before 4.25%, as money supply ...