Enda Brady: UK correspondent on economists warning UK inflation may lead to 7 percent interest rates - Heather du Plessis-Allan Drive

The Bank of England may have to keep interest rates at 7 percent to counter inflation, economists warn.

US-based investment bank JP Morgan says there's a risk that persistent inflationary pressures could force the central bank to raise interest rates.

UK correspondent Enda Brady says the region experienced years of people buying huge houses and spending while credit was cheap- and the chickens are coming home to roost.

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