Interest Rate Predictions Tristan on 02 Jun 2009 01:41 pm
I was in my local branch of Natwest Bank today, I won’t bore you with the mudanity of what I was doing – opening a business savings account if you must know – but I had a very interesting chat with the business adviser in the branch who deals with all aspects of their products, savings, investments, mortgages and so on.
He informed me that he had received an internal memo recently from Natwests’ in house economic forecasters stating that they felt the current low interest rates which most of us borrowers are benefitting from should last until the end of 2010.
I was quite shocked, but very pleasantly surprised by this, as I had predicted that interest rates would rise during 2010. If we do see the current 0.5% BoE base rate until the end of next year, then my predictions will be completely wrong – not that I mind, I have a mortgage and am quite enjoying paying just over 2% on my mortgage.
This will mean misery for the hundreds of thousands of pensioners who have significant savings in their savings accounts, and in fact, while I was in Natwest sorting out a savings account for my corporation tax, I was rather amazed to find out that I will be getting a whopping 1.25% interest on my savings – hardly seems worth it really!
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