Interest rates look set to rise towards the end of 2015.
Mark Carney, the current governor of the Bank of England, has suggested that interest could rise to around 2% within the next three years. This is a significant increase from the record low 0.5% that we have seen over the past 6 years.
“It would not seem unreasonable to me to expect that once normalisation begins, interest rate increases would proceed slowly and rise to a level in the medium term that is perhaps about half as high as historic averages. In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year.”
Should you worry? It is never wise to panic when it comes to finances, and Charles James are always on hand to discuss any concerns you may have. The news of increased interest rates will be good news for savers, but borrowers may want to look at different options ahead of any changes.