Alan Clarke Rates Quotations

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.

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,

Speculation that we will see deep interest rates is overdone. In the context of the widely anticipated rate cut in August, it is not surprising that the Halifax figures rose. Mortgage approvals suggest we should soon get better news on house-price inflation.

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.

Not even the most dovish of forecasters expects interest rates to be cut at Thursday's meeting.