An increase in interest rates is increasingly likely after inflation figures rose to 3.1%.Philip Shaw, chief economist at Investec Securities, said: "Today's figures mean that a May hike is now even more of a cast-iron certainty than previously. Our forecast that rates will peak at 5.5% is under review."
Richard Woolnough of M&G expects a rise in May & one in the autumn & winter to bring rates up to 5.75%.
Conclusion: If you are buying a house or remortgaging, opt for a fixed rate option.
