Bank of England interest rates set to stay low

Posted: 09 Sep 2009 15:17:38 GMT

Bank of England interest rates will remain low for some time, analysts have predicted.

The prediction is made in the most recent Business Trends report from BDO Stoy Hayward LLP.

According to partner Peter Hemington, it is "almost inevitable" that interest rates will continue at a low level.

The accountancy and business advisory group said that there are low price pressures within the economy and it expects the Bank of England to keep the cost of borrowing at 0.5 per cent until the end of 2010 at the earliest.

It also believes quantitative easing will continue.

Mr Hemington commented that consumer spending has helped to maintain the economy but buyers will need help next year, hence the continuing low rates.

Recent figures from the Bank of England show that in July, the total net lending to individual people saw a fall of £0.6 billion.

Meanwhile, there was a £0.4 billion net repayment of lending that was secured on dwellings.


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