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Interest Rate Rise Date Pushed Back Further
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Interest Rate Rise Date Pushed Back Further
Analysts believe that interest rates will stay at their record low even longer after £74 billion was taken off share prices on this week’s Black Monday.
The FTSE-100 recovered slightly after the crash, ending on Tuesday 3% up, despite another day of huge loss on the Chinese market.
The government in Beijing cut interest rates for borrowers, hoping to repress the falls, and experts expect the disaster to be beneficial for UK mortgage holders.
Former Financial Services Authority (FSA) chief Lord Turner states: “The point at which interest rates rise will be put even further back.
“We are in deeply deflationary times and I would be very surprised if UK or US interest rates will be more than 2% or 2.5% even by 2018.”1
Last month, the Bank of England (BoE) reported that interest rates will likely increase early next year, after six years at just 0.5%.
However, Chancellor George Osborne warns that the economy faces a global downturn, and Britain is “not immune” to its own crisis.1
1 Yeatman, D. (2015) ‘Black Monday ‘will push back rate rise’’, Metro, 26 August, p.2
