It is expected that the policy makers of Bank of England are going to have a meet on Thursday. That has raised fears in the market that rates are going to see a sharp rise since inflation is totally out of control.
One can also expect that the after effects of the last meeting of Bank's Monetary Policy Committee are going to come into play as at time there was an opinion of keeping a hawk-eye on the economy. Two the members had even called for a rate hike in between 0.5-0.75 per cent. Only one of the team members supported the idea of putting in more money into the economy.
At present, the official borrowing rate is at its 315-year low. It happened after the suspension of "quantitative easing" programme. As a result, £200 billion was pumped inside the economy till November last year.
There is view in the market that keeping the interest rates 'far below' the 'normal levels' is going to have a negative impact on the property mark and that on the way is going to have repercussions on consumer demand.