The P2P lender’s Q2 investor barometer asked its investors if they thought the Bank of England would raise base rates from 0.5% in the next three months.
Some 52% predicted the Bank wouldn’t, 25% expected that it would, while the remainder said they were not sure.
Stuart Law, CEO at Assetz Capital (pictured above), said that until the economy picked up significantly, interest rates would remain low.
- A guide to the Innovative Finance Isa
- Assetz Capital provides over £26m of funding in Northern Ireland
- Assetz Capital rate rise leads to £10m investment
“…We won’t see an economic turnaround until the government understands properly what will fuel it – which is easily accessible growth capital for ambitious businesses that will grow jobs and wages.”
Stuart added that when the base rate rises, savings rates should do likewise.
“But history shows us that this very rarely fully happens, with banks holding back part of the base rate rise for themselves.
“Unfortunately, savers’ expectations that high street banks may provide returns that outstrip inflation are likely to be found wanting in the months and probably years to come.”
Leave a comment