Consumers expect interest rates to rise over the next year, according to research by Lloyds TSB.
A survey by the bank has found that 40 per cent of people expect to be paying more for secured and unsecured loans, despite recent reductions.
The Bank of England's monetary policy committee is due to announce its next decision later this week, having voted to reduce the official base rate by 1.5 per cent to three per cent last month.
But chief economist at Lloyds TSB Corporate Markets Trevor Williams noted that the cut had little effect on consumers' confidence levels.
"Despite market speculation that rates could fall even further on Thursday and next year, consumers still believe rates are set to rise," he remarked.
A quarter of those polled predicted that interest rates would be at the same level in 12 months.
Head of research at Hargreaves Lansdown Mark Dampier recently suggested that the base rate could fall as low as zero per cent in the coming months.
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