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Interest rate rises `to continue`
30 July 2007
Most people believe that in spite of a summer that has seen multiple rises in the base interest rate, more are yet to come, according to the recent Consumer Barometer from Lloyds TSB.
Some 79 per cent of respondents to Lloyds` survey said that they thought the rate will be higher in a year.
And only five per cent thought that the base rate will be lower in a year`s time. The current base rate is 5.75 per cent.
Trevor Williams, chief economist, Lloyds TSB Corporate Markets, said: "The interest rate hike in July did little to reassure consumers there was an end in sight to the increases and they widely seem to agree with the prevailing view in financial markets that at least one more hike is on the horizon."
These results mean that consumers are preparing for larger mortgage payments, Mr Williams added.
The Consumer Barometer also showed that people are more worried about job security, despite the fact that figures show strong economic growth.
Overall, the UK has £1,325 billion of personal debt, according to the debt charity Credit Action.
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