In its annual intermediary outlook survey, the lender asked 276 intermediaries where they believed BBR would be by the end of 2010.
Only 9% believed that base rate would remain at 0.5% and 7% believed it would rise above 2.25%, while 35% believe it will be between 1.25% and 2%. Lee Gladwell, director of sales and proposition at Platform, said the findings clearly demonstrated that intermediaries believe there will be stability in 2010.
He said: “With only a small increase in BBR throughout the year, it explains why brokers would favour recommending tracker products at the present time.”
Daniel Clayden, director of Clayden Associates, agreed that BBR would be below 1% at the end of the year but said rates will rise in 2011.
He added: “I think the Bank of England believes raising interest rates may choke off an economic recovery. However, in 2011, I would them to rise as the Bank will want to reach close to the pre-recession rates of 4%.”
