Consumers aware of interest rate debate - Loans - News - Moneyfacts


Consumers aware of interest rate debate

Consumers aware of interest rate debate

Category: Loans

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

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 It is now over 6 months old so the content may be out of date.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

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…