Savings fears as second Bank of England official warns of 4% inflation rise
Savings could well be impacted by an inflation rise, with interest rates likely to be affected. This will create concern for Britons who are determined to grow their money while keeping it safe. Yesterday, it was announced inflation rose to 2.5 percent in the 12 months to June, however, this may not be the end of the matter.
Recently, the Bank of England predicted inflation would peak at approximately three percent in the coming months.
However, a second official from the central bank has seemingly rejected this idea, instead suggesting a staggering four percent rise could be on the cards.
Sir Dave Ramsden, deputy governor of the Bank of England, stated it was likely the rate could increase to this amount.
In a speech, he said: “I wouldn’t be surprised to see the whole inflation rate potentially rising as high as four percent for a period later this year.”
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