How Long will Interest Rates Stay Low?

As most people will know, interest rates have remained low for the last several years, and although Britain, like many other western countries, is still financially insecure, they look like remaining that way for some time. Once the Bank of England set its growth forecast lower than expected, and inflation recovery has taken a back seat, theybre concerned not to raise interest rates, which might worsen the situation.

Jobs and Wage Growth

Labour costs have not risen to the extent that both the Chancellor and the Bank of England predicted last November, because of less available work; the current report suggests that webll be well into 2017 before therebs a rate rise. It is not just in the UK that growth has slowed; this slow down appears to be a global phenomenon that seriously worries some financiers.

Mortgages

If interest rates stay low until 2017 b and even then, the forecast is only for a growth of 0.25% b then it is good news for homebuyers. At the moment, lenders are still in competition for borrowers, so it is worth shopping around to see where you might get the best rate. In recent months, house prices have risen while interest rates have broadly slowed or dropped. Mortgage rates are at a near record low right now, so there may not be a better time to think about buying a property b especially as the government has some good deals for first time buyers, and rates are set to remain stable well into 2017.