Money markets bring forward UK rate hike estimate to 2015

A dramatic shift in the outlook for interest rates has been seen with money market indicators now pricing in a base rate rise in the UK to 0.75% in two years' time rather than three.

A key interest rate curve now puts a rise from the current record low level of 0.5% in summer 2015. The jump forward come amid growing fears quantitative easing will be eased back in the UK as well as the US, the Daily Mail reports. The US Federal Reserve has already hinted it will curtail QE later this year if the world's largest economy continues to recover, an announcement that has sent markets reeling. Improved signs of life in the UK economy and niggling inflation, which rose to a higher than expected 2.7% in May, have convinced some that the UK may follow suit sooner than expect...