An article in the Telegraph today suggests that interest rates will stay at their historic low of 0.5% until 2014 at the earliest.
Bank of England Governor Sir Mervyn King is expected to signal on Wednesday that the Bank Rate will remain at a level around its record low until at least the end of next year.
The publication of the latest quarterly inflation report from the Bank of England is also expected to cut economic growth forecasts, again.
It is expected that the Bank will warn people to “brace for higher than expected inflation” over the medium term.
The predictions come from IHS Global Insight who are expecting to see the usual dispiriting mix of reduced growth but higher inflation expectations.
We agree with these forecasts – for lower growth, higher inflation and low interest rates – and believe that it is important to position financial plans accordingly.
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