Following the Bank of England‘s rise in interest rates earlier this month a survey undertaken by the global financial informations and services company, IHS Markit, has shown that the number of consumers expecting another rise in the Bank of England’s base rate to take place was only marginally reduced, even in spite of the 0.25% increase which was announced by governor Mark Carney on 2 August.
The results showed that of those surveyed, 44% of people predicted another rise in the next six months, down from 50% the month before.
However, most strikingly it was also reported that one in five consumers still believe another rate rise is possible within the next 3 months.
The Bank of England have been preparing the public for a rise for sometime and it appears that the results of the IHS survey indicate that consumers are starting to taking note. Carried out by leading market research analysts – Ipsos/Mori – of the 1,500 adults who took part, whilst most reported that their current financial situations were ‘generally good’, there was significant concern over the future of the UK economy as a whole with the rating for the next year showing the largest level of consumer pessimism since early 2017.
It is believed that the potential increase of living costs and the ongoing uncertainty around Brexit has contributed to these concerns which in turn have led to the increase in public consumer pessimism.
With all indicators and perceptions pointing towards another rate rise, we cannot stress enough the importance to review your mortgage and secure a better deal and rate going forward through what look likely to be uncertain times for the UK economy.