1 in 3 Chance of Interest Rate Rise Next Month

A poll by Reuters suggest that there is a 1 in 3 chance of a raise in the interest rates next month.

The possible move is put down to rises in inflation and growth, and would come as a bit of a surprise to many, who were expecting rates to remain steady this year, but possibly to rise next year.

An upwards move in the interest rate would mean more expense for those on with mortgages which followed the interest rates (tracker mortgages), but might stimulate a bit of saving.

Personally, we’re just in the process of securing another mortgage, and have chosen a fixed rate for a period of 5 years. I was betting on their being a rate rise, although like others, wasn’t expecting the rise to be as soon as August. But of course, if there’s a 33% chance of a raise, there’s an even bigger (66%) that the rate will stay the same.

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