UK interest rates may have peaked at current level

09/07/07 - ING Financial Markets

LONDON, September 7 (newratings.com) - Analysts at ING Financial Markets say that UK interest rates appear to have peaked at the current 5.75%.

In a research note published this morning, the analysts mention that although chances for another hike are still present, the volatile market environment is unlikely to encourage such a move by the Bank of England. The housing market slowdown, negative real wage growth, a weak external environment and a stronger currency are likely to exert pressure on economic activity in the upcoming days, the analysts say. Interest rates are expected to be cut from the summer of 2008, ING Financial Markets adds.