You are here: Home - News -

Bank of England policymaker predicts up to six interest rate rises in three years

by:
  • 22/05/2018
  • 0
Bank of England policymaker predicts up to six interest rate rises in three years
Interest rates could rise up to six times over the next three years, one of the Bank of England’s key policymakers has predicted.

 

 

Gertjan Vlieghe said his expectations of growth and inflation are in line with a gradually rising path of interest rates, in written evidence to the Treasury Select Committee (TSC).

The economy will require one or two quarter base rate rises in the three-year forecast period, he added.

This would take the base rate up to 2% by 2021, from its current level of 0.5%.

It comes as Vlieghe is reappointed as one of nine members of the Bank of England’s Monetary Policy Committee (MPC).

At the most recent committee meeting this month he did not vote to raise rates, but two members of the MPC – Ian McCafferty and Michael Saunders – did.

Vlieghe said his forecast is subject to “significant uncertainty” because of unknowns over how the economy will react to rising rates.

 

Rates likely to go up in 2018

Bank governor Mark Carney today also told MPs on the Treasury Committee that interest rates are “more likely to go up than not”.

It comes after the MPC held off raising rates in May as economy growth stalled in the first months of 2018.

Carney said  it appeared snow and bad weather had dented economic performance, which is likely to result in a rebound in the second quarter.

The chief policymaker added that it was right to hold off a rate rise in May and wait for further economic data.

There are 0 Comment(s)

Comments are closed.

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.

Profiles

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.

Marketwatch

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.

Poll

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:
A magnifying glass in front of a pile of money
Shortage of limited company capacity driving borrowers to bridging

A lack of capacity in the limited company buy-to-let mortgage market is driving investors to use bridging finance instead, according...

Close