Published by Zeb BhamBusinesses that are keeping a close eye on global forex trading activity have been advised interest rates are unlikely to rise until more favourable economic indicators start to emerge.Sir Mervyn King, governor of the Bank of England, told the Treasury Select Committee this week that activity is very weak in the housing market, while consumer spending is also subdued.He confirmed that the Bank's Monetary Policy Committee will therefore wait until conditions across the economy are demonstrably improving before increasing the cost of borrowing.For instance, Sir Mervyn stated that unemployment should be going down instead of up by the time interest rates are raised."It should also be the case that the interest rates that borrowers face should not rise as fast as the rise in the Bank rate," he added.This comes after the British Chambers of Commerce said the Bank of England is "right to wait" before increasing the cost borrowing, since consumers and businesses are currently facing "acute" pressures.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site