You Heard it Here First, at the Streets Sponsored Mark Carney Lecture

Posted on 30th July 2015 by Streets


Image to represent You Heard it Here First, at the Streets Sponsored Mark Carney Lecture

Seamlessly, his account led into the state of the economy today, with ultimately the headline grabbing announcement that UK interest rates could rise at the turn of the year. He indicated that the 0.5% borrowing costs, which have been in place for six years, were about to come to an end.

Interest rates in the UK have not risen since the global financial crash but the governor said that he expected rates to rise over the next three years, reaching "about half as high as historical averages," or about 2% by 2018.

However, any such changes to interest rates are determined by the performance of the UK's economy in upcoming years.

Mark Carney said: "Short term interest rates have averaged around 4.5% since around the bank's inception three centuries ago. It would not seem unreasonable to me to expect that once normalisation begins, interest rate increases would proceed slowly and rise to a level in the medium term that is perhaps about half as high as historic averages.

"In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year."

Paul Tutin, Chairman and Managing Partner at Streets Chartered Accountants, commented: “We were very pleased to support Lincoln and the Cathedral in celebrating the 800th anniversary of the Magna Carta.  It seemed appropriate and fitting not only that the Governor of the Bank of England should be speaking in the city but also that it should be the setting for such a key announcement.”

Photograph courtesy of Bloomberg


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Settling energy disputes

Business owners that are in dispute with their energy suppliers will be interested in the free support on offer from the Energy Ombudsman. In a recent press release the Department for Energy Security and Net Zero confirmed the


COVID Bounce Back abuse

The Insolvency Service has recently published information confirming that a total of 831 company directors were banned in 2023-24 for Covid support scheme abuse, up more than 80% on the previous year, and that the average length of director


VAT retail scheme

VAT retail schemes are a special set of schemes used by retail businesses to account for VAT. The schemes are used by businesses that sell a significant amount of low value and/or small quantity items to the public with different VAT liabilities. The use of the schemes can save ...


You might also be interested in...