Those with private wealth 'will see interest rates remain low'

Individuals with private wealth are likely to see the continuation of the current low rate of interest, it has been predicted.

People with money invested in foundations and trusts might find their assets appreciate at a similar pace to savings accounts, as editor of Investment and Business News Michael Baxter claims the Monetary Policy Committee (MPC) meeting tomorrow (August 5th) will not result in a higher base rate.

The private wealth expert states despite good results in quarter two, the UK "is entering slightly unknown territory" and the full effects of austerity measures will not be felt for six months to a year.

He claims "there has to be a significant chance the double-dip recession will be the result", as deficit-cutting measures implemented simultaneously in multiple countries has never happened before.

In March 2009 the base rate was dropped to 0.5 per cent and has not been changed since.

In recent months, MPC member Andrew Sentance has been the sole voice calling for it to be raised.ADNFCR-2318-ID-19918983-ADNFCR