Hold off a bit there, will you...?
Nicola Horlick, CEO of Money&Co., believes that the much-signalled rise in interest rates is being shunted further and further back, and may even be postponed indefinitely.
Writing in her latest blog, she explains: "Earlier this year, Mark Carney, Governor of the Bank of England, was indicating that interest rates could rise earlier than previously expected, but there seems to have been a backtracking from that position over the last couple of months. There is a concern that the good employment figures that the UK has seen over the last year may be about to deteriorate.
"The latest Manpower Employment Outlook Survey, which was published this week, included the views of 2,102 employers in the UK and surveyed their employment intentions for the fourth quarter of 2014. They were asked, "How do you anticipate total employment at your location to change in the three months to the end of December 2014 as compared to the current quarter." Employers in seven of the twelve regions reported weaker hiring intentions, with the South West declining by 20 per cent and employment intentions being significantly weaker in the East and South East of England and in Scotland and Wales. Employment is a key indicator that the Bank of England takes into account when setting interest rates."
That leaves desposit accountholders and fixed-interest savers with some dismal returns, she argues. However, theres is an alternative, with Money&Co.'s latest A-rated loan offering an indiactive gross yield of over 7 per cent. Learn more about how to lend by watching the short explanatory video here. To lend, you must register. To gain a fuller understanding of lending risk, click here.
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