Interest rates ‘will not return’ to 5% ‘in my lifetime’ - BoE expert predicts record lows
Interest rates have unfortunately taken a tumble recently, as a result of the ongoing COVID-19 pandemic. The Bank of England reduced its base rate to a staggering low of 0.1 percent in March 2020, and has kept the rate at the same level since. This has had a knock on effect on banks and building societies across the UK, and thus on Britons who are wishing to put their money away to let it grow.
However, a Bank of England policymaker has stated he does not expect interest rates across Britain to return to commonly observed rates from earlier on in the 2000s in his lifetime.
Gertjan Vlieghe, a member of the Monetary Policy Committee (MPC) at the central bank attributed his belief partly to the effect of an ageing population within the UK.
He made the comments when speaking to students at Durham University about the state of the economy.
The students posed the question as to whether interest rates would return to levels commonly observed before the financial crisis.
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