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Business leaders predict interest rates rise early in 2015

Business leaders have delivered a warning about overheating in the housing market, saying interest rates will need to rise early next year. Interest rates will rise from 0.5% to 0.75% early next year, according to CBI predictions.

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CBI: Election uncertainty is 'major risk to the recovery'

Business leaders have said political uncertainty about the outcome of the next General Election remains a "major risk to the recovery".

The Confederation of British Industry (CBI) urged politicians to push ahead with boosting the supply of homes and taking decisions on major infrastructure projects.

The CBI warned the political leaders not to give "pre-election pledges" which could hinder investment or limit future prosperity. Credit: Oli Scarff/PA Wire

The major parties need to show they would "stick with what is working" after next year's election, the CBI's chief policy director Katja Hall said, urging them against costly "political positioning".

She added: "(Positioning) must not be allowed to stifle investment, whether it's an unrealistic immigration target, unjustified interventions into specific markets, flirting with leaving the European Union, delaying vital long-term infrastructure projects or restricting labour market flexibility."

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