Press Release

Forimmediate release

Monday10 November 2003

Base Rates to Reach 4.5%, IoDsays

Following new houseprice figures released today from the Land Registry, the Institute of Directors(IoD) predicted interest rates would rise to 4.5% by the end of 2004. Today'sfigures show a 20% growth (year-on-year) in the north of England compared witha 10% rise in the South-east.

Graeme Leach, ChiefEconomist at the IoD, said:

The house priceripple is surging north across the country, threatening a further wave ofconsumer borrowing as homeowners release equity. The Bank of England isattempting to head off this threat with interest rate rises. As a result, therecent quarter point rise is the first, but by no the means last increase wewill see over the next year. The IoD expects base rates to reach 4.5% by theend of 2004.

Ends 10.11.03 No.204

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David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 07764 883420

Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs