The Bank of England should hike interest rates in the second half of 2010 and lift borrowing costs to 3.5% by the end of 2011 to control rising inflation, an economic report says today.
Lenders have increased rates on small loans by two-and-a-half fold since the credit crunch took hold despite interest rates dropping to their lowest-ever level in that time, research by MoneySavingExpert.com reveals.