Consumers ‘cannot see an end to hikes’
Consumers are of the belief that the base rate level of interest will continue to rise in the future, it has been claimed.
According to the latest Consumer Barometer from Lloyds TSB Corporate Markets, five per cent of people think that rates will be lower in a year's time, with 79 per cent expecting them to be higher.
The hikes have also led to those surveyed expressing more caution regarding their job prospects, with 20 per cent fewer people than last year reporting better rather than worse conditions in the job market.
And chief economist for Lloyds TSB Corporate Markets Trevor Williams stated that July's rate rise did little to quell consumer fears and that they are preparing to pay more for their mortgages.
"They widely seem to agree with the prevailing view in financial markets that at least one more hike is on the horizon," he said.
The base rate of interest was set at 5.75 per cent by the Bank of England in July 2007.
© Adfero LtdYou can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.