UK grows 0.7pc paving way for rate rise

Sarah Davidson

July 28, 2015

Calum Bennie, savings expert at Scottish Friendly, said: “After a slowdown in the first quarter of this year, it looks like the economy was just taking a little breather and is now returning back to the type of pace we have come to expect over the past few years.

“With growth getting back up to speed, we should also be prepared for a moderate return of inflation. Providing this trend continues, the Bank of England will be well placed to start to raise interest rates from their historic low.

“A rate rise won’t happen quickly, but for homeowners in particular, this is a blessing as it gives them time to prepare for the inevitable increase in the cost of borrowing.

“Planning and preparation for rising interest rates will mean that anyone who sees their mortgage repayments climb, can help offset the cost through the money they saved over these coming months.”

Earlier this month Bank of England governor Mark Carney suggested that UK interest rates could rise “at the turn of this year” if growth and inflation were benign.

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