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Consumers predict interest rate rise

Consumers predict interest rate rise

Category: Economy

Updated: 12/03/2009
First Published: 12/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A third of consumers expect interest rates to be higher in a year's time, it has been revealed.

Last week the Bank of England dropped the base rate to its lowest-ever level of 0.5 per cent, a move that could to cheaper payments for those with secured loans .

And a poll by the Bank has shown that 33 per cent expect rates to have increased by this time next year - up from 26 per cent that held the belief in 2008.

In addition, just 18 per cent of respondents predicted a decline, a figure that has dropped from 39 per cent when the quarterly survey was last conducted.

Meanwhile, the proportion of people who stated that an increase in interest rates would be best for them reached 20 per cent - the highest level since the poll started in November 1999.

Last week's cut was the sixth in succession, with the base rate having stood at five per cent at the beginning of October.

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