Is a rate rise looming?

Is a rate rise looming?

Commenting on Bank of England inflation report today, Yael Selfin, Chief Economist at KPMG in the UK, said:

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“The MPC decided to leave interest rates unchanged today, although it also gave a clear signal that we should expect a rise earlier and potentially faster than many might have been anticipating. After over eight years of record low rates, even a slight increase could have a significant impact on households, and both businesses and individuals would be wise to begin preparations for a new interest rates reality.

”The Bank of England is expecting wage growth to accelerate towards 2019, as the labour market continues to tighten and growth remains positive. This should compensate to some degree the fall in real income that households are expected to suffer in the short term, which is also expected to put further pressure on consumer spending.”

-ENDS-

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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff.  The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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