Interest rates held for 28th Month

Its amazing to think we have had 0.5% base rate now for over 2 years. Central banks say they like to be boring – and press comments seems to suggest we will not see any change until next year. Despite Euro rates being raised to 1.5% ( up 0.25%- this will not help countries such as Ireland and Portugal/Spain.)

Looking back at 2011 next year I am sure we will think how ‘ lucky’ we have been to have had such low rates for so long. Bit of course that tells only half the story- most savers have been hurt- most borrowers havent benefitted from cheaper rates and personal loans and credit card costs have increased not decreased- base rate has little imact for many.

Commercial lenders remain cuatious and further job losses at Lloyds probably will not make that bank any keener on lending.