Base rate ‘to rise 0.7 per cent’

A poll of property investors has found that the base rate is expected to remain at one of its lowest ever levels.

The Young Group of property portfolio managers found in its latest investor sentiment survey that 98 per cent of respondents believe the base rate will not rise to as high as two per cent in the next year.

On average, an increase of 0.7 per cent is predicted, which would leave it at 1.2 per cent.

Such a situation could be beneficial for those looking to change their credit cards, as it could help keep lending rates down.

Chief executive of the group Neil Young said the Bank of England is likely to wait until it has ceased its quantitative easing programme before considering any tightening of monetary policy.

A base rate of anything under two per cent would still be lower than at any time in the Bank of England’s history prior to the current economic crisis.

The previous record low of two per cent was in place for a few months in 1951.

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