July 30, 2014

UK interest rate could reach 3 percent says Bean

The UK interest rate could settle at 3 percent by 2017, according to Charlie Bean, the deputy governor of the Bank of England. Speaking to the BBC, Bean stated:

“The bank rate averaged about 5% in the decade or so before the crisis

“It’s reasonable to think that given the headwinds that are still out there as well as some the global forces that perhaps the level that we go to three or five years out might a couple of percentage points below that.”

He also noted that any increases in the UK interest rate was likely to occur in small-steps rather than large sudden hikes.

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