You are here: Home - Government Help - News -

Interest rates set to stay at 0.5% till November

Written by:

Interest rates will not rise before the summer, and probably not until November, according to economists.

In the annual Financial Times survey of more than 80 prominent economists, most viewed with scepticism the theory that the Bank of England will raise rates in the first half of this year. Of the 85 who commented, none believed that the Bank will raise interest rates – currently at a historic low of 0.5% – before the summer.

A majority thought the first rise will not come until November at the earliest. Despite this, 25 of the economists felt that rate rises should come sooner – with some saying they should have already risen.

Those surveyed also suggested uncertainty surrounding the general election in May could dampen the recovery, though they did predict growth will be maintained over the next 12 months.

The upcoming election is touted as one of the most significant in decades, with the result widely perceived as being too close to call.

Another voters’ decision also weighted on recipients’ minds, however: a majority of those surveyed told the FT they would cut their growth forecasts in the event of a referendum on the UK’s EU membership.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Save money now!

See how much you could potentially save by remortgaging to a different product

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
Read previous post:
Four jailed for ‘dizzying’ mortgage fraud

An estate agent and financial adviser are among four fraudsters due to be jailed in Wales today after perpetrating a...