Interest rates start to creep up after nine years- more to come?

Interest rates start to creep up after nine years – more to come?

The Bank of England increased the base interest rate in August to 0.75% – the second increase in 12 months. The Bank’s decision to raise the rate to its highest level in nearly nine and a half years was no great surprise to the investment community. Of more interest to the Independent Financial Advisers and Investment specialists at Pembroke Financial Services were the comments the Bank offered on the long-term trend of base rates relative to inflation. The Bank gave a theoretical estimate of the base rate needed to maintain inflation and economic growth in a fully functioning economy, rather than another forecast of where rates might be in a year’s time…