Brits expect rates rise
June 4, 2007 by admin
Filed under News, News-Loans
The majority of Brits are expecting interest rates to rise again this year.
Lloyds TSB has published its Consumer barometer in which it revealed that most of us (77 per cent) are fully expecting another increase.
This is bad news for those with a mortgage, loan or credit card, however, the fact that most borrowers are expecting a rise may help them to be properly prepared.
Confidence in job prospects and job security fell during May, with more people believing that their position is vulnerable compared to the month previous.
“Last month’s interest rate rise did little to convince consumers that rates had reached a peak,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.
“In line with the prevailing opinion of the financial markets, consumers believe rates will increase further this year.
“We’re just beginning to see the impact of May’s rate rise on consumers with sentiment on job security and prices starting to cool.
“Even so, there is still some way to go before the Bank of England will be reassured – they have emphasised that for inflation to stay low, inflation expectations must be anchored at low levels,” he added.
Borrowers concerned that interest rates are likely to increase in the coming months should try to account for a rise in repayments when budgeting.
