Released on = May 4, 2007, 4:01 am

Press Release Author = Charlotte Burrows

Industry = Real Estate

Press Release Summary = The governor of the Bank of England, Mervyn King, has added
more fuel to speculation of an interest rate rise in the next meeting of the
monetary policy committee (MPC) in May, says National Homebuyers.

Press Release Body =

Mr King has come in for criticism recently for failing to keep inflation below the
three per cent upper limit imposed by chancellor Gordon Brown.

However, he hinted in a meeting with the Treasury Select Committee that an interest
rate rise might be on the cards in order to bring inflation back under control.

Mr King was also on the defensive over claims that the MPC had failed to account for
the rapidly expanding money supply in the UK economy, which ultimately caused the
inflationary headache.

In fact, Mr King insisted, world market conditions had been more of an influence on
the UK economy\'s predicament than the money supply had been.

\"What determines asset prices in the UK is very much what is happening in the world
market,\" Mr King confirmed.

\"And in the past few years there's been a real sharp fall in risk premium around the
world and that has driven up asset prices.\"

It is thought that higher interest rates could spell trouble for many homeowners
already struggling to cope with rate hikes in August, November and January.

Julian King, director of National Homebuyers, the UK\'s leading quick sale property
company, adds: \"We predicted damaging interest rate rises as early as 2005. Now this
has become a reality everybody seems surprised.

\"In line with Professor Tim Congdon, a member of the Treasury Panel of Independent
Forecasters, we predict interest rate rises to increase to 7.5 per cent.

\"To homeowners this will stretch them beyond their means and as a result more and
more people will be turning to National Homebuyers, the UK\'s quick sale property
solution.\"

Web Site = http://www.nationalhomebuyers.co.uk/newsarticle.asp?ID

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