Interest rate speculation building, says savings accounts supplier Santander

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Interest rate speculation building, says savings accounts supplier Santander

Fri 10th Sep 2010

A finance expert from Santander has suggested speculation is building regarding when the base rate will be raised.

Barry Naisbitt, chief economist at Santander UK, claimed that the Monetary Policy Committee (MPC) still has its foot "on the accelerator" and now has to decide whether to ease up or push down harder.

He pointed out the base rate has been at 0.5 per cent for a year and a half now, which has led to plenty of speculation about when it will be raised.

"We'll find out more about these views and see if the balance of the debate is changing when the Bank of England publishes the minutes of the MPC meeting later this month," Mr Naisbitt noted.

Commenting on the MPC decision, moneysupermarket.com head of banking Kevin Mountford suggested the news does not come as a surprise, but said that it is prolonging the misery of savers in Britain.

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