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Interest rate increase

16/05/2007

New research shows that most UK consumers are going to face a futher interest rate increase.

Nearly 80 per cent of people from Lloyds TSB Corporation predicted that in 2008 the interest rate will have reached far beyond the current rate.

Consumers were summarising the risen inflation in April, majority of people believed that totals had increased than decreased in the last year up to six-months figure of 63 per cent.

The Lloyds TSB Coporate Market stated that the feedback on consumers spending was not going to effect the local high street.

"Pretty much everyone expected the base rate to rise last week," said Trevor Williams, who commited that forewarnings over last week's rate increase were going to help scale down the effect on the high street.

"With high price expectations and the recent rate rise we’re likely to see some slowdown in consumer spending but with job security remaining strong, the impact won’t be drastic," he stated.

The average consumers who had an idea in the remaining financial environment reached two points April period to 90 – the highest peak stated Nationwide.