Consumers 'not expecting lower rates'

30 July 2007
The base rate level of interest will not be getting any lower in the future, consumers believe.

According to the latest Consumer Barometer from Lloyds TSB Corporate Markets, 79 per cent are expecting it to be higher in a year's time, while five per cent recorded that they think it will be lower.

This lack of confidence has also been expressed in people's job prospects, with those thinking they will be better in a year's time dropping by 20 per cent for the month.

Chief economist for the company Trevor Williams commented that this month's interest rate hike has done little to quell the fears of consumers.

"They widely seem to agree with the prevailing view in financial markets that at least one more hike is on the horizon," he said.

Earlier this month, the Bank of England's monetary policy committee agreed to set the base rate level of interest at 5.75 per cent.

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