Will interest rates rise in the next 6 months?
5th January 2012
The Bank of England has been holding down interest rates at an all time historic low for almost 3 years.
In an attempt to stabilise the crumbling UK economy, the Bank of England has maintained interest rates at 0.5% for 33 consecutive months.
The situation has been stagnant for so long that experts have begun to speculate over when it may possibly change.
Some experts believe that interest rates will rise by the end of next year, while others suggest that there is likely to be no movement until 2013. Some industry analysts are not so optimistic and believe that rates will not rise until at least 2015!
Ray Boulger, a mortgage industry expert, told The Guardian; “I would see [the base rate] staying at 0.5% until mid-2013, and then only going up slowly."
Currently the rate is being held at a record low to stop the UK economy falling into a double dip recession, which looks an increasing possibility with the potential collapse of the Euro and in the face of high unemployment.
Many UK households have been struggling to cope for the past 18 months as a direct result of the credit crunch. The situation regarding interest rates has been positive for some within the UK, but not everyone.
Savers have suffered tremendously as a result of the low interest rates.
September figures from the Bank of England suggest that savers have actually lost out on an approximate total of £43 billion due to low interest rates.
Those over 50 will continue to see little or no returns on their savings in the near future if the situation does not change. Over 50’s Life Cover could offer an alternative boost to your family in the future if something was to happen to you unexpectedly.
In contrast, homeowners and those in debt have seen the amount of interest they need to pay significantly reduced.
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