The Bank of England will today hold interest rates at the record low of 0.5% it is widely expected. A wise decision given we are holding onto the climb out of the recession by our finger nails!
Concerns regarding the sharp rise in inflation in January led to the Governor of The Bank of England having to write to the Chancellor to explain why this was! Increasing interest rates now will only mean another letter in a few months time!
Predictions of an increase in economic growth are strong however, so how quickly the economy grows will reflect quite closely when we see, not if we see, interest rate increase later this year. This balance may not be good news for those homeowners on Tracker interest rates that have been used to such keen rates over the last 18 months. Lets hope that those savings have been working hard elsewhere, otherwise that disposable income may be hard to find again.
Yes, the interest rates really hit 12 month record. I don’t believe in the predictions.