Lloyds TSB: Consumers expect further rate rises
British consumers believe that interest rates will continue to rise over the next 12 months, according to a new survey.
The Consumer Barometer from Lloyds TSB, states that 77 per cent of consumers in May said that interest rates would be higher than they are now in 12 month’s time.
Britons are feeling less secure in their jobs with a rising number of people expecting prices to rise as well, according to the research.
Trevor Williams, chief economist at Lloyds TSB, commented: “Last month’s interest rate rise did little to convince consumers that rates had reached a peak.
“In line with the prevailing opinion of the financial markets, consumers believe rates will increase further this year.”
The Bank of England is also unlikely to reduce rates in the short-term as inflationary pressures still take hold, Mr Williams continued.
In related news, the British Bankers’ Association recently welcomed a meeting between banks and individual voluntary arrangement organisations to improve customer understanding over the debt solutions.
IVAs are an alternative way of managing debt and avoiding the stigma associated with bankruptcy.
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