Interest Rates to Rise 2015

Interest Rates to Rise 2015.

Bank of England Monetary Policy Committee member Martin Wheale has said in an interview on television that has spread around the web that he expects interest rates to start to rise in 2015.

Interest rates were originally linked to inflation benchmarks and then last year a new principle of them being set against unemployment figures which again has now been reversed by Mark Carney, Governor at the Bank of England.

Mr Wheale suggests that interest rates will rise next year but if wages increase at a faster rate than inflation which subsequently then drives property prices up further and retail prices, interest rates may be increased earlier.

Comment

We have suggested all along that there is a conflict of interest with interest rate settings.

Property values need to go up to reduce debt and reduce pressure on toxic bank debt as well the Government benefitting from an increased sense of well-being.

We suggest that no interest rate increases until after the election on 7^th May 2015.