Loans: interest rate rises `a step closer`

23 June 2009

The base rate has been at a record-low 0.5% for almost four months, but one expert has suggested that this could soon change.

Edward Menashy, chief economist at stockbroking and investment management group Charles Stanley, has suggested that `the prospect for rising interest rates [may have] moved a step nearer`, due to the recession slowing down and credit becoming more available than in recent months.

He claimed that the `futures market` anticipated interest rates of 1.12% by September this year and 2.66% by December 2010.

A loans expert for Think Money commented: "There has been a lot of speculation around what will happen to interest rates over the next 12 months. Many economists think the base rate will remain at 0.5% for some time.

"In the meantime, the low base rate means that there are some particularly competitive loan and mortgage deals on offer - and borrowers can improve their chances of finding the best deal by speaking to a professional loans adviser."

---

Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.

Related links:

• Loans
• Loan interest calculator
• Loan costs & the base rate
• Loans: how the base rate affects availability
• Mortgage interest rates

Tags: loan, loan rates, interest rates, economy, loan interest rates, best loan deals, loan deals, best mortgage deals, mortgage deals, mortgage interest rates

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.