Press Release Summary = Interest rates should rise further to 5.75 per cent this year, lobbying group for industry and business Confederation of British Industry (CBI) has predicted.
Press Release Body = CBI expects the 0.25 increase to occur by autumn, but it also expected a reversal back to 5.5 per cent by the end of the year.
The figures were part of the CBI\'s quarterly economic forecast, which was published during the weekend.
Higher borrowing costs also led the CBI to predict weaker economic growth by 2008, to about 2.4 per cent, a drop of 0.2 percentile points.
\"Though not a foregone conclusion, a further interest rate rise now seems more likely than not this autumn and we have built this into our forecast.
\"Recent oil price rises, unexpected and sharp increases in food costs, higher than expected import prices and businesses rebuilding profit margins after last year\'s squeeze have all added to inflationary pressures,\" said Ian McCafferty, CBI\'s chief economic adviser.
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