Market Interest Rates
Base Rates to stay below 1.00% for 5 years? This is the view of one of the leading economists in a recent interview. If you would like to see the interview of Roger Bootle click here.
He is right? We won't know for a number of years but considering the amount taxes have to increase by in order to pay back the debt the Government is borrowing, it wouldn't surprise me.
Inflation and consumer spending is usually controlled by fiscal policy (using taxes and government spending) or monetary policy (Interest rates) and my personal view is any Govermment can't increase both, otherwise we will end up back in a recession.
Also we could look at the Japanesse situation where interest rates have stayed below 1% for 15 years to support their economy.
Current interest rates - We aim to update monthly but if you require interim rates, please call
| | Interest Rate as of 1/4/10 |
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| Bank of England Base Rate | 0.50% |
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| 3 month £ Libor | 0.65% |
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| 3 year mid price swap rate | 2.09% |
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| 5 year mid price swap rate | 2.85% |
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| 10 year mid price swap rate | 3.80% |
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Swap rates are the markets indication of where it forecasts interest rates in the futures. However, history shows the markets have tended to get their forecast wrong but if you were interested in having a fixed rate agreement, they are the rates you will be charged in addition to any margin that the lender will add onto them.
Base Rate movements over 30 years
