Private banking services 'should not expect base rate to rise'

Private banking services and other financial groups should not expect the Bank of England to raise the base rate in the near future, according to one expert's prediction.

Darren Cook, head of press and public relations at Moneyfacts.co.uk, observed the authorities are sending out "mixed messages" in terms of the fate of interest rates in the short term, arguing October's spending review means it is unlikely the current 0.5 per cent level will be changed.

Firms involved in private banking services might find clients enquire after riskier asset vehicles, as this forecast means returns on savings accounts are unlikely to rise over the next few months.

The wealth management expert claims the economy 'probably cannot afford' an augmentation of the base rate at the same time as public spending is being cut drastically.

Figures released yesterday (September 27th) by Santander reveal 68 per cent of Britons expect interest rates to increase within the next year, indicating widespread misconceptions surround current fiscal policy.  ADNFCR-2318-ID-800086076-ADNFCR