UK News 06-08-2004 Mortgage Rate Rises Again who: The Bank Of England what: Rises interest rate by 0.25% where: Bank of England, LONDON when: Yesterday snippet: "Businesses and homeowners were last night digesting the third increase in interest rates in four months," says The Guardian, "after the Bank of England acted to cool down Britain`s fast-growing economy." The 0.25% increase raised rates to 4.75% and The Sun calculates that monthly repayments on a £60,000 mortgage will be going up by £9.42. Business Editor Ian King says that represents a monthly increase of £46.09 a month since last summer. The Monetary Policy Committee has been increasing rates in an effort to keep inflation in check and to quash spiralling consumer spending. But the good news, according to The Independent`s economics correspondent Philip Thornton, is that the committee now says there is evidence that the housing market is starting to cool, "a possible sign the MPC will pause before raising rates again". Not so, says The Guardian, which says City analysts are predicting "at least two more quarter-point moves over the coming months". Meanwhile, "drivers are also braced to dig deeper in their pockets," says The Times, "after lobby groups said there was a serious threat that dearer oil could send petrol prices above the 85p-per-litre level that set off protests four years ago." [... more]

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