(1888PressRelease)
August 04, 2007 - London (chance4finance): According to a recent research, British consumers are expecting at least one more rise in the base rate of interest this year. Around 79 per cent of UK consumers are convinced that the cost of borrowing will go up again.
The recent increase in July was the fifth occasion when the Bank of England raised its base rate of interest in the last 12 months.
Trevor Williams, the Chief economist at Lloyds TSB Corporate Markets said: "The interest rate hike in July did little to reassure consumers there was an end in sight to the increases and they widely seem to agree with the prevailing view in financial markets that at least one more hike is on the horizon."
A poll conducted by Lloyds TSB Corporate Markets showed that only five per cent thought that interest rate would fall over the next 12 months.
If a vast majority of consumers is expecting a hike in the base rate of interest, it is a good thing in that it suggests consumers are preparing for higher mortgage payments. A rise in the rate of interest of will affect the overall loan market including secured loans and other personal loans.
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