Interest rates still at 0.5% after 6 years
The Bank of England Base Rate has now been at a record low of 0.5% for six years, and there is no real indication that this will change much short term. it expects inflation, as measured by the Consumer Prices Index, to head back up to the Government target of 2% by the first quarter of 2017.
Forecasting when interest rates will rise is no simple task at the moment, the Bank of England sticks to its mantra that interest rate rises will be “limited and gradual”, the Bank has a slight majority of forecasters predicting the beginning of next year in the Inflation Report.
Those people looking to take out a mortgage or remortgage, fixed interest rates continue to fall, as borrowing costs are cheap and lenders are keen to attract borrowers before rates do rise.