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Interest rate cuts `were not anticipated by consumers`
26/12/2008
Consumers failed to anticipate the interest rate cuts seen in recent months which have resulted in lower mortgage and loan repayments for some people.
This is according to research conducted by Fairinvestment.co.uk, which found that 12 months ago, 34 per cent of Britons questioned believed interest rates would be at least five per cent by now.
At the time of the poll, the base rate stood at 5.5 per cent.
Commenting on the findings, Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, said: "The results of the poll back in January just go to show that people really didn`t expect such economic turmoil to happen.
"Interest rates have now been slashed to just two per cent in a desperate attempt to stimulate lending and the economy."
Indeed, some experts have predicted that the Bank of England`s Monetary Policy Committee could set rates as low as zero per cent if the economy continues to deteriorate.
