Inflation may push rates up to 8 per cent

first_imgSunday 22 August 2010 10:40 pm Inflation may push rates up to 8 per cent Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof whatsapp Tags: NULL whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy Fanautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorBrake For ItThe Most Worthless Cars Ever MadeBrake For ItTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal Pastcenter_img INFLATION could peak as high as 10 per cent in the next couple of years, a leading policy think tank has warned, forcing a crippling spike in interest rates up to around eight per cent.Andrew Lilico, the chief economist at the Policy Exchange think tank, believes that once the economic recovery kicks in properly in late 2011 and early 2012, rapid growth in the money supply will see inflation jump to levels not seen since the early 1990s.Lilico predicts that the consequent sharp rise in interest rates will send inflation even higher to around 10 per cent – and that a base rate of around eight per cent will be required to keep prices from spiralling even further out of control.“All of this is the optimistic case – what happens if the government gets policy right and its policies work,” the über-bearish economist added.Official figures from the Office for National Statistics are this week expected to confirm that the UK economy registered positive growth of around 1.1 per cent in the second quarter.However, Bank of England governor Mervyn King last week admitted that inflation is likely to stay above the two per cent target at least until the end of next year. Share KCS-content Show Comments ▼last_img