View more on these topics

Interest rates could rise next week, says Skandia

The Bank of England could raise interest rates by as early as next week, warns Skandia Investment Group.

Rupert Watson, the head of asset allocation, says there is a possibility rates could be raised next week but admits it is more likely that any rate raises would occur in May.

The announcement signals a reversal in Watson’s thoughts on the subject as he previously indicated a belief there would be no raises until the end of 2011 at the earliest.

But ‘hawkish’ minutes emerging from the most recent Bank of England meeting combined with recent data has caused Watson to revise his estimations.

Watson now says a raise in May will be followed by a series of hikes that eventually leads to interest rates hitting 2-3 per cent by the end of next year.

Recommended

Equities overtake bonds after best sales in a decade, IMA stats

Equities replaced bonds as the most popular asset class among investors in 2010, attracting net retail sales of £7.5bn in 2010, according to statistics from the Investment Management Association. In 2009 bonds topped the asset class rankings, but according to the IMA sales of equity funds in 2010 were at their highest level since 2000. […]

Paragon Mortgages launches new product range

Paragon Mortgages has launched a new range of buy-to-let fixed rate and tracker products. The buy-to-let lender has launched three new two-year tracker products, a three-year tracker at 3.6 per cent and three three-year trackers. The tracker products start at 3.3 per cent and fixed rate products start at 4.25 per cent. Loan-to-values range from […]

Second MPC member votes to raise rate

The Bank of England’s monetary policy committee appears to be edging closer to a rise in bank rate, according to its minutes for January. MPC member Martin Weale joined Andrew Sentance in voting for a 0.25 per cent increase. Adam Posen voted to leave rates on hold and increase the bank’s quantitative easing programme by […]

13

Insurers must be allowed to use gender as a risk factor

Any type of discrimination is wrong. Whether it is racism, ageism, sexism (just ask the guys at Sky Sports) or any other “ism”, it has no place in modern society. However, many in our industry are not applauding calls from the EU Court of Justice to end gender discrimination by insurers, and backing their plans […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Rupert Watson,

    This is a rather non commital statement. Truth is nobody knows. I wish these so called experts would just stop guessing.

    Make your prediction and stand by it. Lets face it Mr Watson, you got your last prediction wrong.

    Based on past performance, you have probably got it wrong again.

    the consesnus on base rate now seems to change by the hour!

    Next prediction please…

Leave a comment