Expat rates: why offshore savers should avoid long-term fixed rates - Telegraph: "While announcing that economic growth this year would be lower and that inflation could reach 5 per cent before June, the Bank’s governor Mervyn King revealed its projections for interest rates.
Although he said his announcement should not be taken as advance warning of rate movements, Mr King said that rates will rise a quarter point to 0.75 per cent in the next four months and to 1 per cent by the end of the year. The announcement added that by the end of 2012, rates will be at 2 per cent and at 3 per cent by the end of 2013.
Mr King said: 'It is clear that at some point Bank [of England] rate will have to go up. Anyone making long-term financial decisions should not expect Bank rate to be at these low levels indefinitely'.
That surely means don’t put your money in a long-term fixed rate, however tempting you might find the deals on offer. Michelle Slade of Moneyfacts says: 'All the indications are that the Bank of England will be raising interest rates sooner rather than later, with some analysts predicting more than one rise in base rate during 2011."
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Although he said his announcement should not be taken as advance warning of rate movements, Mr King said that rates will rise a quarter point to 0.75 per cent in the next four months and to 1 per cent by the end of the year. The announcement added that by the end of 2012, rates will be at 2 per cent and at 3 per cent by the end of 2013.
Mr King said: 'It is clear that at some point Bank [of England] rate will have to go up. Anyone making long-term financial decisions should not expect Bank rate to be at these low levels indefinitely'.
That surely means don’t put your money in a long-term fixed rate, however tempting you might find the deals on offer. Michelle Slade of Moneyfacts says: 'All the indications are that the Bank of England will be raising interest rates sooner rather than later, with some analysts predicting more than one rise in base rate during 2011."
DISCLAIMER:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.
