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NewsLow base rate 'vital for economic recovery'
Low base rate 'vital for economic recovery'
Consumers looking to obtain insurance, banks and credit services might have noted one expert's verdict on the importance of keeping the Bank of England base rate low.
Nick Scarrett, head of investment and pensions at Fair Investment Company, suggested that he believes the financial institution will keep current interest rates untouched.
He said the bank "is almost certainly going to leave the base rate as it is ... in an attempt to strike a balance between the risk of inflation and keeping the economic recovery on track".
Mr Scarrett added that if the economy is to recover in the long-term, the base rate must remain at a low level.
The remarks came despite a recent poll conducted by the expert's organisation that showed 67 per cent of people believe the charge will be higher than 0.5 per cent by July 2011.
The news comes at a time when four in five UK citizens are altering their spending patterns for goods and services, according to Santander Current Accounts.
Posted by Emily Jones
04/08/2010 16:41
News category: Consumer