Bank of England interest rate-setter Ian McCafferty said on Tuesday it was reasonable for financial markets to expect a couple more small rate hikes over the next two years.
“We’re only talking over the next couple of years of possibly a couple more small interest rate rises over that period. That’s what the markets are expecting and I think that’s a reasonable rule of thumb if the economy performs as we expect."
His comments echoed those of BoE Governor Mark Carney last week after the BoE raised borrowing costs for only the second time since the financial crisis over a decade ago.
British house prices spiked in July, despite other signs of softness in the market. House prices surged 1.4 percent during the month of July after a 0.9 percent rise in June, Halifax said.
Compared with a year ago, house prices were 3.3 percent higher than a year ago, the fastest rate of growth since November and compared with a 1.8 percent rise in June.