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Consumers aware of interest rate debate

Consumers aware of interest rate debate

Category: Loans

Updated: 16/02/2009
First Published: 16/02/2009

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 It is now over 6 months old so the content may be out of date.

Britons are confident that interest rates will rise because they are staying informed, it has been suggested.

Lloyds TSB Corporate Markets has found that an increasing number expect rates to be higher in a year's time, despite many economists stating that they will remain low for a long period.

And chief economist Trevor Williams noted that people are aware of debates and making predictions as a result.

"Consumers are ... simply assuming that if rates are going to get as low as people talk about then by next year the only way they can go is up," he said.

Should the expectations prove to be correct, it could mean an increase in interest charges for holders of secured loans.

According to the firm's survey, 24 per cent more people think rates will be higher this time next year than think they will be lower - an increase of four per cent from a month earlier.

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