As the data continue to firm and upside risks to inflation build, we believe the MPC will adjust interest rates higher in the New Year,
With growth back to trend, housing market indicators trending higher and consumer spending substantially improved from the mid-2005 weak spot we continue to believe the next move in rates is up not down.
We believe that with inflation rising rapidly, and concerns among the hawks that it will be harder to bring under control ... the door has been closed to further cuts.
It's a healthy increase. It shows the retail sector is not on the brink of falling off a cliff. I still firmly believe the next move in interest rates is more likely to be up than down.