Press Release

Forimmediate release

Thursday6 November 2003

Rate Rise Inevitable, says IoD

The Institute ofDirectors (IoD) welcomed today's decision by the Bank of England to increaseinterest rates by a quarter of a per cent.

Graeme Leach, ChiefEconomist at the Institute of Directors, said:

The Bank of England hasfinally run out of patience with UK consumers. Having waited patiently for UKhouseholds to bring their borrowing under control, it has finally decided tointervene. The price of doing nothing was deemed to be too great. With theripple effect of stronger house prices extending north across the country,continued rapid growth in mortgage equity withdrawal seemed inevitable.

Ends 6.11.03 No.203

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