THE TELEGRAPH: Interest rates may rise to 8pc within two years to choke off soaring inflation, according to radical new research.
Andrew Lilico, chief economist at the influential Policy Exchange think tank, has warned of an interest rate environment not seen since the 1990s. He said the rise could happen as the recovery beds in and Government measures to stave off a recession lead to an explosion in the money supply. Mr Lilico also warned of a return to "boom and bust", as ballooning inflation threatens to tip the economy back in to recession in 2013 or 2014. >>> Philip Aldrick | Saturday, August 21, 2010
