Released on = June 20, 2007, 7:43 am

Press Release Author = National Homebuyers

Industry = Real Estate

Press Release Summary = Interest rates should rise further to 5.75 per cent this
year, lobbying group for industry and business Confederation of British Industry
(CBI) has predicted.


Press Release Body = CBI expects the 0.25 increase to occur by autumn, but it also
expected a reversal back to 5.5 per cent by the end of the year.

The figures were part of the CBI\'s quarterly economic forecast, which was published
during the weekend.

Higher borrowing costs also led the CBI to predict weaker economic growth by 2008,
to about 2.4 per cent, a drop of 0.2 percentile points.

\"Though not a foregone conclusion, a further interest rate rise now seems more
likely than not this autumn and we have built this into our forecast.

\"Recent oil price rises, unexpected and sharp increases in food costs, higher than
expected import prices and businesses rebuilding profit margins after last year\'s
squeeze have all added to inflationary pressures,\" said Ian McCafferty, CBI\'s chief
economic adviser.

Web Site = http://www.nationalhomebuyers.co.uk

Contact Details = Sterling House
20 Victoria Way
Burgess Hill
West Sussex
RH15 9NF
0870 979 8118
Fax: 01444 257333
info@nationalhomebuyers.co.uk