When will interest rates go up again? | Money | The Guardian

When will interest rates go up again? | Money | The Guardian

This week, for the 30th month in a row, the Bank of England held the base rate at 0.5%, and economists predict the first interest rate rise won't be until at least 2013. If we are now heading into a Japanese-style era of ultra-low rates to combat a depressed economy, is it time for households to fundamentally reappraise their personal finances?

As recently as the beginning of this year, the consensus view in the City was that "emergency" low rates would start to rise within months. In late January, the money markets were pricing in three 0.25% rate rises by the end of this year. It didn't happen.

Now the mood among financial experts has turned dramatically. Across the developed world, economic indicators are flashing red, and some forecasters believe the base rate will remain at its record low for many years.