Interest Rates In 2010 & Beyond

"We need to take urgent action to keep our interest rates lower for longer, to boost confidence in the economy, and protect jobs to show the world we can live within our means."

So said George Osborne in his speach outlining an inital c £6bn of government spending cuts.

Cuts in government spending mean less money chasing goods and services in the UK economy. Over time this will put downwards pressure on inflation. So this in turn should encourage the bank that it does NOT  have to raise rates.

Irrespective of the economic fundamentals the new Chancellor's "demand" that rates be kept "lower for longer" will not have gone unnoticed at the bank.

Savers and borrowers should review their startegies Contact Us for advice on the best rates...