Monday 18th December 2006
Public perception expects interest rates to rise over the coming year, according to Lloyds TSB Corporate Markets.
The banks consumer banking barometer, published monthly, showed an increase in the number of people who claimed they expect interest rates to be higher at this time next year than their current value.
Meanwhile, 62 per cent of the 2,000 respondents also said they had seen a rise in prices in the past 12 months.
Some 80 per cent anticipated a future rise in interest rates, while 79 per cent expected to see an increase in prices in general.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "Despite the bank rate holding at five per cent this month, consumers are expecting the gloom to continue well into 2007."
"However, this widely held belief that rates are on an upward spiral is at odds with the views of the majority of economists," he added.
Lloyds TSB offers a guaranteed tracker mortgage which follows changes in the Bank of Englands base rate which it says means customers "dont have to worry".
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