Private banking awaits interest rate rise

Private banking decisions could be based on tomorrow’s (July 8th) interest rate policy.

The Bank of England’s Monetary Policy Committee (MPC) will meet on Thursday and decide whether to keep the base rate at the historic low of 0.5 per cent.

A low interest rate has impacted upon private banking customers who rely on the returns from their savings, many of whom may want a rise.

Managing economist at the Centre for Economics and Business Research Charles Davis said there is, however, still a case for keeping the base rate at its current level because of the strict fiscal measures in place.

’If you look at the data the recovery is not robust yet, the recovery is in [play] but it is still at a relatively early stage and we still have got an unprecedented fiscal policy tightening coming almost immediately,’ he noted.

Private banking customers may be aware MPC member Andrew Sentance previously voted to raise interest rates.ADNFCR-2318-ID-19877631-ADNFCR