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Rate rise indication of further hikes to come, warns the Yorkshire

The Yorkshire says the latest base rate rise is a strong indicator of further rate hikes to come.

The Monetary Policy Committee&#39s decision to increase Bank of England base rates by a further 0.25% for the second consecutive month was no surprise to the industry.Many factors are considered to have affected the decision including strong economic growth, strong consumer spending, a buoyant housing market and strengthening labour market.

Chris Parrish, head of treasury at the society, says: “Although targeting house price inflation is not strictly within the remit of the MPC, the consequences of rising house prices and its impact on consumer confidence is likely to persuade the MPC to raise rates further still later this year.”

The Yorkshire says the rate increases mean that an average borrower will pay approximately £80 per month more for their mortgage than they did a year ago.

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