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."

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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

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