Rates on Hold Till 2016?

The majority of commentators today suggest that any rate rise in the UK at least is likely to be held off until 2016.

“With inflation so low, and the low oil price kicking in, I’m prepared to say I think it will be extremely unlikely that there will be an interest rate rise this year,” says Darius McDermott, managing director at Chelsea Financial Services.

“What’s the justification for interest rate rises at the moment? What can we argue? GDP growth is sub-historic normal. It’s decent – certainly better than in Europe – but it is still below what you would call a boom. Inflation is low, though the one thing I do think we will see more of later in the year is wage inflation.”

Comments are closed.