UK interest rates to stay at 0.5% until 2017

  • Print
  • Comment

UK Britain Union Jack Bunting 480

UK interest rates will stay at rock bottom per cent for another four years as the economy struggles to recover, according to a leading investment bank.

Citi says it expects rates to stay at 0.5 per cent until the middle of 2017 – a year longer than previously expected, according to The Mail.

The prediction would see interest rates held at 0.5 per cent for eight years, having been cut to the low back in March 2009.

Citi has also cuts its growth forecast for the UK in 2013 from 0.8 to 0.4 per cent and said output would only rise between 0.5 and 1 per cent in 2014.

Citi chief UK economist Michael Saunders says: “We think the UK will lose its AAA rating in 2013. The economy is likely to disappoint again in 2013. We expect that growth will stay weak in 2014.”

  • Print
  • Comment

Daily Email Updates

If you enjoyed this article, sign up to receive the latest breaking news and analysis for your industry from Fund Web.

Money Marketing Awards 2015

Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your say Edit my profile/screen name

You must sign in to make a comment


Fund Data


Will the oil price rise above $50 a barrel this year?