You are here: Home - News -

Interest rates will rise in May: BCC

by: IFAonline
  • 08/03/2011
  • 0
Interest rates will rise in May: BCC
The Bank of England will raise interest rates from their historically low levels in May, the British Chambers of Commerce (BCC) has predicted.

The group also downgraded its UK GDP growth forecast to 1.4% for 2011, lower than its December projection of 1.9%.

David Kern, chief economist at the BCC, said: “Given the shift of opinion within the Monetary Policy Committee, we assume interest rates will increase from May.”

However, he warned that any hike in rates could derail the recovery.

“We believe this will be premature and risky in view of the fragility of the recovery and tough fiscal measures expected in the Budget,” he said.

The BCC added that the primary reason it downgraded its growth growth projection for 2011 was the unexpected 0.6% GDP contraction in Q4.

BCC director general David Frost stressed more needed to be done to help UK businesses.

“British businesses will welcome the government’s desire to boost enterprise and reduce red tape but these words must be backed by action,” he said.

“While we support efforts to reduce the UK’s deficit, these measures alone will not deliver a sustainable recovery.”

The BCC also upped its growth prediction for 2012 from 2.1% to 2.3%, saying current attempts to rebalance the economy towards the private sector will improve the economy’s long-term prospects. 

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Precise joins Sesame with two exclusives

Precise Mortgages has joined Sesame’s lending panel and launched two exclusive tracker deals for the network’s appointed representatives.