Financial Times FT.com

Rates set to hit 6% by end of the year

By Scheherazade Daneshkhu, Economics Correspondent

Published: August 9 2007 03:00 | Last updated: August 9 2007 03:00

Interest rates look certain to rise to 6 per cent before the end of the year after the Bank of England yesterday cemented expectations of an autumn increase as itforecast a significant slowing in consumer spending to bring down inflation.

Mervyn King, the governor, said: "We do expect to see a slowing in consumer spending in the next year, but nothing terribly dramatic."

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