THE MAJORITY of peer-to-peer investors do not expect the Bank of England to raise the base rate in the next three months, a poll suggests.
Only 25 per cent of the 1,000 investors surveyed by P2P business lender Assetz Capital thought the Bank will raise rates from 0.5 per cent in the next quarter.
More than half (52 per cent) said they do not think rates will increase and 24 per cent were not sure.
The base rate has remained at 0.5 per cent since March 2009, apart from falling briefly to 0.25 per cent between August 2016 and October 2017.
Stuart Law, chief executive at Assetz Capital, said interest rates will remain low until the economy picks up significantly.
He argued an economic turnaround will not happen until the government recognises the role that easily accessible business growth capital plays in growing jobs and wages.
Law warned that even if the base rate does rise, banks usually hold back part of the raise themselves rather than passing it all onto savers.
“Unfortunately savers’ expectations that high street banks may provide returns that outstrip inflation are likely to be found wanting in the months and probably years to come,” he added.
Mark Carney, the governor of the Bank of England, recently said rates could fall again if a disorderly exit from Europe happens.