World should expect further rate rises says King

The world economy is set on a new trend of gradually higher interest rates, the governor of the Bank of England, Mervyn King, said in an interview published Thursday. He also said UK house prices had been "very important" in recent months in MPC meeting deliberations.

UK interest rates, which have been raised four times in seven months to a current level of 4.50 percent, could be affected by continued steep rises in house prices around the country, Bank of England governor Mervyn King warned T