Consumers 'will see base rate rise in 2011'

Posted by Helen Jones

Consumers are highly likely to experience a rise in interest rates before the end of the year, an expert has said.

Last week (July 7th), the Bank of England opted to maintain the base rate at its historically low level of 0.5 per cent for the 28th month in a row as it appeared to deem the British economy too weak to cope with a hike in the aftermath of the recession.

However, according to James Roberts, director at online resource Pure FX, this trend will not continue for too much longer because the country is now "doing alright" in the wake of the slump.

Mr Roberts noted that signals of this gradual return to health will become apparent later in the year, which, in turn, will result in the Monetary Policy Committee acting on the base figure.

He added that the Bank will have little choice but to do this because "inflation at that point would still be pretty high".
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13/07/2011 15:19

News category: Consumer

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