You are here: Home - Uncategorized -

Interest rate to rise again in June

0
Written by:
17/05/2007

Interest rates look almost certain to rise again to 5.75% in June, pushing up the cost of borrowing for the fifth time since last August.

In its latest quarterly inflation report, the Bank of England, which is responsible for setting interest rates, said that it would have to increase the Base rate again in order to get inflation down towards its target rate of 2% and keep it there over the next two years.

Bank Governor Mervyn King said that is “is determined to meet the 2% target, and will take whatever action required to do that.”

Legal & General has accused the bank of being too timid in its approach to interest rates, and claims that it should have acted more swiftly and decisively to increase the Base rate. L&G investment strategist James Carrick said: “The slower the MPC acts, the higher interest rates might ultimately need to peak.”

L&G suggested that rates may need to go to 6% this year.

The rising cost of borrowing is bad news for the UK’s homeowners with mortgages. The monthly repayment on a £200,000 mortgage has already increased by £120 since August.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Annual travel insurance more cost-effective

Analysis from MoneyExpert.com shows that some annual travel insurance policy premiums can be cheaper than the average single trip rate.

Close