Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
carney
September 15 2016

Interest rate hold will benefit P2P, predicts leading economist

suzie10 Industry News, News Bank of England, interest rate cut, interest rate decision, Mark Carney, Monetary Policy Committee, p2p, P2P lending, peer-to-peer, Vicky Pryce

THE BASE rate is likely to remain at 0.25 per cent for at least another month, boosting investor interest in the peer-to-peer sector, a leading economist has predicted.

Professor Vicky Pryce told Peer-to-Peer Finance News that she expects the Bank of England to “take a breath” before changing the base rate again, and this could result in a boost for P2P lenders.

“While interest rates stay low, P2P lending will probably do rather well,” she said. “The banks will be bypassed.”

Pryce added that the banks appear to be unwilling to pass on their liquidity to borrowers, while there is “a complete unwillingness for people to invest while the rate is low”.

The base rate is reviewed every month by the Bank of England’s Monetary Policy Committee, and the next update will be announced at noon today.

In August, rates were cut to an all-time low of 0.25 per cent, after being held at 0.5 per cent since 2009. At the time, Bank of England Governor Mark Carney said that he would not rule out further base rate reductions.

His decision to lower the interest rate in the wake of the Brexit vote has since been criticised by some MPs who say he acted too quickly, a suggestion Carney has refuted.

Pryce does not think that the MPC will vote to cut rates again soon.

“I would guess that what they are going to do is take a breath and see what the impact of their previous actions has been,” she said. “They will wait.”

Funding Circle’s SME fund issues in-line dividend Lending Club scandal was good for business, says Ranger Direct Lending

Related Posts

Visa application approved, close up shot of a form, passports and pen.

Industry News, News, Top 3

Fintechs to benefit from apprenticeship fund and tech visas

Compensation on Clipboard. 3D Illustration.

Industry News, News, Top 3

LCF law firm responds to Treasury compensation scheme

FOLK2FOLK - Roy Warren MD - head crop (col)

Industry News, News, Top 3

Folk2Folk IFISA inflows up 200pc thanks to RateSetter transfers

Popular posts:

  • Business Loan Network appoints administrators
  • Starling Bank ready to acquire a lending business
  • Funding Circle chief turns down £190,000 pay rise
  • PwC brings fintechs together for collaboration
  • New BBB boss was warned about “glass cliff”
  • Chancellor unveils raft of measures for fintech sector
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by