Mis-sold Mortgage Claims > Mortgage News
Conflicting views on Bank of England base rate increase
Tue, 03 May 2011
A recent report following research carried out by Lloyds TSB shows that almost a third of consumers expect that the base rate will increase this summer. This conflicts with the Bank of England Governor, Mervyn King, who is dismissing and early rise.

The research statistics from Lloyds TSB show that 18 per cent of consumers expect a rise in July and 19 per cent in October with over 21 per cent being unsure when an increase may take place.

Meetings of the Bank of England MPC, show that there are still only three members in favour of an increase, possibly up to 0.5 per cent. The Lloyds research shows that public perception is that as many as 44 per cent believe the increase will be 0.25 per cent while 26 per cent expect a 0.5 per cent increase.

It is clear that the publication of such research is not regarded as representative of the facts by many industry experts and will only increase fears of a payment shock being experienced by many borrowers who remain cautious about both savings and remortgages .

Head of savings at Lloyds TSB, Greg Coughlan commented: "It is clear that Brits are expecting interest rate rises this year and we know savers are uncertain whether to lock their savings away for a fixed period with the continued speculation that interest rates will change."

Bank of England Governor Mervyn King said high debt levels pose "massive" economic challenges that would be exacerbated by higher interest rates.

He added, "The economic consequences of high-level indebtedness now would become more severe if rates were to rise."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.