Interest rate rise due soon?

Finance

Interest rate rise due soon?

Will they – won’t they?

A rate rise has been on the discussion agenda for some time now. Recent comments from the Bank of England MPC have been somewhat confusing, leaving us none the wiser again. With the next policy meeting due on 3rd August 2017 – my personal opinion is that a rate rise is long overdue and with the US having increased their rates twice this year we are seeing more international pressure with the global economy having generally moved into a better place.

The inflation target is 2% with the current rate at 2.9% – well above the BOE target. Inflation figures are due on 18th July 2017.

If interest rates remain this low for much longer we will seriously limit our options of a very ‘useful’ method to battle a downturn in the economy should it happen again any time soon. We are informed banks are better positioned now and more able to cope with a severe downturn after policy changes and rigorous stress tests forced banks to hold more capital – let’s hope so!

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