Tuition Fee Hike May Force Up Mortgage Rates
Byline: SAM FLEMING
THE decision to hit families with higher university tuition fees could force the Bank of England to raise interest rates, it emerged yesterday.
Bank governor Mervyn King warned that next month's 150 per cent increase in top-up fees will push up inflation substantially this year, at a time of record energy price rises.
In its quarterly economic outlook, the Bank signalled that it may respond with at least one more increase in its lending rate.
A quarter-point rise would put borrowing costs at 5 per cent - their highest level since 2001 - hitting Britain's 18million homeowners. Last week, the Bank surprised borrowers with …
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Publication information: Article title: Tuition Fee Hike May Force Up Mortgage Rates. Contributors: Not available. Newspaper title: Daily Mail (London). Publication date: August 10, 2006. Page number: 19. © 2007 Daily Mail. COPYRIGHT 2006 Gale Group.
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