Corporate foreign exchange news

Interest rates 'will stay low for a long time'

Friday, 19 August 2011 09:07:45 GMT

Posted by Zeb Bham
Interest rates in Europe and the US are likely to remain little changed in the near future and it is thought the situation will be largely the same in the UK, something that could impact forex dealers.
The base rate has been held at a record low of 0.5 per cent by the Bank of England since March 2009 and could hold steady into 2012.
What Mortgage editor Ben Wilkie suggested: "Obviously no-one knows for certain and different economic factors could come into play, but it is looking increasingly likely that interest rates are going to stay very low for a long time."
The comments follow research conducted by the Chartered Institute for Securities & Investment, which indicated that no change to the rate is expected for at least a year by 51 per cent of the financial services experts surveyed.
Meanwhile, 17 per cent believe a rise will occur within six months.
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