Rate rises – either for savers or borrowers – look set to be postponed until mid-2016, Ben Brettell has suggested.
The senior economist for Bristol-based Hargreaves Lansdown, said that given inflation was expected to fall below zero in the coming months and stay close to zero for the rest of the year, there was no pressure on the Bank of England to raise interest rates in the short term.
He said: “With inflation likely to pick up once the effect of the drop in oil prices falls out of the year-on-year calculation, a cut in rates looks most unlikely, and I don’t see them rising until mid-2016 at the earliest.”
