Interest rate rise predicted as CBI warns on house prices

Policymakers must be ready to act on 'unsustainable house prices', business leaders warn

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BUSINESS leaders have predicted an early rise in interest rates, amid warnings of "unsustainable" house prices in the UK.

The Confederation of British Industry (CBI), which represents tens of thousands of businesses across the country, anticipates a quarter-point rise in interest rates in the first three months of 2015, from 0.5 per cent to 0.75 per cent – six months earlier than it had previously predicted.

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