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Higher interest rates will hit transactions harder than house prices next year

The latest data show few signs of a slowdown in the pace of economic growth and there has been little to suggest that the medium-term inflation pressures concerning the Monetary Policy Committee have eased. Thus, it seems almost certain that July’s interest rate rise will not be the last. Interest rates will peak at 6%, possibly higher. In addition, inflation concerns look set to linger for some time and we no longer expect significant rate cuts next year.

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