Expert: Interest rates will stay at 0.5 per cent for the rest of 2010

Posted: 07 Sep 2010 08:13:14 GMT

Individuals who are want to get onto the property ladder may be interested to hear the comments of one expert, who suggested interest rates will stay as they are for the rest of this year.

Chartered financial planner at Informed Choice Martin Bamford said it would be a "big surprise" if the Bank of England Monetary Policy Committee decided to increase the figure, which currently stands at 0.5 per cent.

"There is a real danger that a higher cost of borrowing could stifle economic recovery whilst doing very little to combat inflation, which already seems to be falling," he added.

Mr Bamford explained there could be some short-term spikes, especially when VAT goes up to 20 per cent in January.

He noted the majority of the inflation in the UK is imported, so a change in interest rates will not have much control.

The specialist's comments follow speculation the Bank will put rates up on Thursday (September 9th) due to the fact inflation is above the government's two- per-cent target.
 

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