Property advisor Jones Lang LaSalle has cautioned that Thursday's interest rate increase in the UK will lead to a sharper economic slowdown than expected in 2008 and with returns ‘softening more quickly in the present cycle'.
Property advisor Jones Lang LaSalle has cautioned that Thursday's interest rate increase in the UK will lead to a sharper economic slowdown than expected in 2008 and with returns ‘softening more quickly in the present cycle'.
The UK’s central Bank of England Thursday raised interest rates by 0.25% to 5.50%. The move was widely expected as a means of tempering the economy and reining in inflation.
Tony McGough, head of forecasting and the economy at Jones Lang LaSalle, said: 'Whilst it is expected that inflation will fall back below 3%, the Bank’s concern that it is remaining stubbornly high, will not fall far enough fast enough and may thus provide its own momentum in the economy - these are the prime reasons behind the latest rate rise and the possibility of yet more to come.'
Click on the link below to read: Real estate lending debt in UK soars to EUR 245 bn
