EXPERT VIEW
Adrian Lowcock, head of investing at Axa Wealth, comments on record low interest rates:
“In 2009 few expected that interest rates would stay low for longer, and certainly not for six years. Since then we have seen expectations of interest rate rises continually pushed back.
“As the UK economy continues to strengthen and unemployment falls, most experts now believe interest rates will rise in 2016, possibly sooner. However, with inflation so low there is currently little pressure for the Bank of England to raise rates.
“Savers have had some respite in recent months, as the ultra-low inflation means that they are now actually getting a real return on their deposits. However, it also means they are likely to continue to receive little interest on their savings as interest rates continue to stay at record low levels. Even when the Bank of England does raise interest rates, it is unlikely to be by very much.”
