UK interest rate predictions – when will the base rate rise?

Current UK interest rate predictions indicate that a Bank of England base rate rise is likely to happen in late 2016.

Analysts are forecasting the base rate will increase to 0.75% in November 2016. Can those mortgage-holders choosing a new deal rely on this prediction?

UK interest rate predictions are an educated best guess, predictions are not an exact science, things constantly change.

Earlier this year forecasters predicted the base rate would rise in early 2014, then they adjusted this to late 2014, then 2015, then 2017 and now they are predicting 2016.

During the first six months of this year the prediction was that UK interest rates would increase during the middle of 2014, this was then reviewed and amended to late 2015.

As the eurozone crisis deepened forecasters revised their prediction, pushing back the date of a likely rise to 2017. They added to this, predicting that at the end of 2012 a cut is more than likely.

The most up to date UK interest rate prediction has indicated that by February 2013 the BoE will have cut the base rate to 0.25%, and by November 2016 it will have increased it to 0.75%

Experts are currently saying that economic prospects for the UK are likely to remain poor for some time. Some analysts have gone as far as to say that the UK could face financial hardship for a decade. Based on this they advise rates are not likely to increase for a few years.

With interest rates being predicted to remain low for the foreseeable future, it could be time for those willing to take a gamble to switch to a cheap tracker mortgage linked to the base rate.

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