One third expect future interest rate rises

December 30, 2024 by Alan

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One third of people are expecting interest rates to be at a higher level a year from now, according to the latest piece of research conducted by the Bank of England (BoE).

This figure is taken from the Inflation Attitudes Survey that the BoE and Ipsos publish during every quarter. The third of people anticipating rises in interest rates by this time next year is an increase on the number who felt that way during the last quarter. Back in August, the figure was 29%.

What the survey also reveals though is that a significant number are not expecting rates to go up. 22% of those who took part in the survey stated that they thought interest rates would remain at the same level. This was the percentage who felt that way in the last survey too.

The report went on to ask respondents which option would be the better one for the UK economy. 11% said that higher interest rates would be a healthier outcome than unchanged or lower rates. By comparison, 9% felt that way in the August survey.

A much higher percentage felt that lower rates would be the best outcome though. 41% stated that this would be more help to the economy, while the figure for the previous survey was 42%. 27% thought that rates staying at the same level would be best, whereas that figure was 28% back during August.

If higher interest rates are on the horizon, this often leads more people to seek the help of mortgage advisors with CeMAP training to ensure they get the best deal possible.