Rates unlikely to increase in 2014

UK economists are largely in agreement that interest rates are unlikely to increase in 2014 – with many predicting that the first rise won’t occur until late 2015.

The BBC polled 28 economists about various financial predictions and only seven per cent of respondents predicted a rate rise this year. Unemployment was also discussed, and almost half of the economists believe that the rate of unemployment will fall to seven per cent in 2014. When unemployment falls below seven per cent, the Bank of England will consider raising interest rates, so the figure is a significant one.

The economists were also questioned about the Eurozone and there was some uncertainty as to whether the crisis is over – with half of the respondents believing it isn’t over yet and one-third believing the Eurozone economy will grow by less than one per cent this year.

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