One third of Brits expect interest rates to rise this summer
New research from Lloyds TSB shows that a third of people in the UK expect to see a rise in interest rates this summer.
The number of people who expect to see a rate rise after May’s meeting of the Bank of England’s Monetary Policy Committee (MPC) is just five per cent.
18 per cent of people expect that interest rates will rise in July, whilst 19 per cent expect the rise to happen in October. 62 per cent of respondents expect interest rates to increase by the end of 2011, whilst 21 per cent say they don’t know when an increase in base rate will occur.
Most respondents who expect an increase believe it will be one of just 0.25 per cent, with 44 per cent expecting a rate increase of that level. 26 per cent of Briton’s expect to see the base rate increase by 0.50 per cent. Five per cent believe the rate rise will; be one per cent and four per cent of respondents expect an increase of more than one per cent in 2011. Twelve per cent believe that there will be no change in interest rates this year.
The survey also looked at how people believe a rise in interest rates will affect their finances. 11 per cent believe that a rate rise will have a significant effect on their finances and cut back on everyday items, whilst six per cent are concerned about how they will cope financially should interest rates rise.
Greg Coughlan, Head of Savings at Lloyds TSB said: “It is clear that Brits are expecting interest rate rises this year and we know savers are uncertain whether to lock their savings away for a fixed period with the continued speculation that interest rates will change.
"Many are unsure how these rises will affect their financial situation so for savers looking to take advantage of potential interest rate rises, a tracker bond may be the ideal solution to ensure their interest keeps up with Base Rate rises as and when they do occur."
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