Experts from the mortgage and savings industry predict when interest rates will rise and by how much.
Adrian Lowcock, senior investment adviser, Bestinvest: February 2014
Having achieved the goal of supporting the banks and housing market, low rates are now having the reverse effect. A rise would boost savings and reduce inflation but we expect rates will stay low while economic recovery remains weak.
Michelle Slade, Moneyfacts Group: August 2013
A further reduction in interest rates has been mentioned, I think it likely interest rates will stay on hold for at least the next year. Good news for borrowers, but for savers a rate rise can’t come soon enough. Most savers are opting for a short term view, but the effects of low rates, tax and inflation means £10,000 invested in the average account five years ago now has the spending power of just £9,374.
Ros Altmann, director- general of Saga Group: August 2013
Despite high inflation it appears the Bank of England is determined to keep interest rates low. This is obviously having a negative impact on anybody hoping to live on their savings in later life and low rates have also made annuities extremely expensive, leading to worse pensions for anyone looking to retire.
Nigel Terrington, chief executive of Paragon, buy-to-let lender: August 2012:
I don’t think rates will rise for at least another year and when they do they will rise slowly. There is little chance of a cut in rates, but we may see some additional Quantitative Easing later this year. Quantitative Easing could stoke inflation in due course, which may be what the authorities want.
Ed Mead, director at Douglas & Gordon, estate agency: December 2011:
I see four more years of turmoil. The Fed trumpeting the next two years at effective zero paves the way for a possible halving to 0.25% before the end of the year. So low rates for two years but when they do eventually rise they may rise fast.
Ray Boulger, senior technical manager at John Charcol, the mortgage broker: January 2013
As Eurozone politicians demonstrate their economic illiteracy by fiddling while the Euro burns, the market will soon force reality upon them. A Euro implosion will be very damaging even to non Euro countries like the UK. I expect Bank Rate will remain at 0.5 per cent until 2013. QE is more likely than a rate cut.