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Prepare for interest rates of between 7 and 8 percent in the not too distant future
(06/05/2011)

The most recent inflation rates show that the Consumer Price Index (CPI) has risen to 4%, a surprise drop of 0.4% from February and the Retail Price Index (RPI) to 5.3%, also a fraction less than February's 5.5%. Normally interest rates are set at about 2.5% above the RPI and therefore an inflation rate of 4% would suggest interest rates set at 7%-8%. Times are not normal but they will have to go up sooner or later. However, many businesse... [more]

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