We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue
Secured Loans > Base rate hits six year mark at historic low

Base rate hits six year mark at historic low

6th March 2015 | Published by Evo Money

Interest rates in the UK have remained as low as 0.5 per cent for six years. The Bank of England first cut the rate to its current level in March 2009, in a bid to boost the economy during the credit crunch.

Recent economic growth has led to speculation that the Bank has plans to raise the cost of borrowing money in the near future. However, inflation is very low, at 0.3 per cent, and so the Bank’s policy makers are unlikely to increase the interest rate for some time yet.

Inflation is likely to remain low and may even turn negative in the late spring, chiefly because the cost of oil has almost halved since last summer.

Bank of England governor, Mark Carney, has spoken of reducing interest rates still further if prices fail to rise over the coming months. He predicts that they will start to increase by the end of this year.

The problem with falling prices is that consumers often put off buying expensive goods in the hope that prices will fall further. Seventy per cent of the British economy is dependent on consumer activity and so a slowdown in sales inevitably has a dramatic effect on economic growth.

Senior economic advisor, Martin Beck of the EY Item Club, believes that the next interest rate rise will not come until early 2016, when inflation should be above 1 per cent and likely to reach the Bank’s target of 2 per cent.

Chief economist at the British Chambers of Commerce, David Kern, called on the Bank to state its intentions clearly, adding that many British exporters are already suffering because the pound is so strong against the euro and that higher interest rates would only worsen the situation. Should the Bank make it clear that it has no plans to raise interest rates until 2016, confidence would increase, he said.

Category: Money
This post was written by Evo Money
Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.


Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
M1 3BE

Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2022 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice | Sitemap
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution