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Rate rise talk boosts brokers

Sarah Davidson

October 8, 2015

The research from United Trust Bank showed that although the majority of brokers saw no change, 25% felt that they had received more new business enquiries whilst 13% felt they’d received fewer.

The survey also asked brokers for their views on when the first increase to the Bank of England base interest rate was most likely to come and 38% indicated the first quarter of 2016 and 33% the second quarter. Just 7% felt that rates would remain static until 2017 or later.

During several appearances in July Bank of England Governor Mark Carney hinted that the first interest rate increase in more than seven years could come around the end of 2015.

Harley Kagan, managing director of United Trust Bank, said: “At the start of the summer it very much appeared that the Bank was laying the groundwork for increasing the base rate to 0.75% by the year end.

“However, since then we’ve had an economic slow-down in China, falling oil prices, a correction of our own stock market, and generally weak global growth. With the US Federal Reserve delaying a forecast start to increasing US interest rates, many commentators have put back their predictions for a first increase to around the middle of 2016 rather than the start.”


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