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 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Log In
carney
June 19 2019

P2P investors sceptical about interest rate rises

Marc Shoffman Industry News, News Assetz Capital, Bank of England, interest rates, Mark Carney, peer-to-peer, Stuart Law

MORE than half of Assetz Capital’s peer-to-peer investors are not convinced that more frequent Bank of England interest rate rises are on the way.

Bank of England Governor Mark Carney (pictured) said in May that interest rate rises could be “more frequent” than expected if the economy performs as forecast.

But a poll of 34,400 investors by P2P lender Assetz Capital found 54 per cent do not believe this will be the case over the next two years.

However, 41 per cent were confident in the central bank’s prediction, while four per cent said they were very confident about the likelihood of more rate hikes.

Read more: Interest rates could rise higher and earlier than expected

Read more: A quarter of Britons think inflation is well above official figures

Fresh data released on Wednesday showed that inflation slowed to the Bank of England’s target of two per cent in May, raising speculation that interest rates could soon rise.

“It’s unsurprising that our investors are sceptical about the Bank of England’s pledge given the present lack of a solid base for that claim,” Stuart Law, chief executive of  Assetz Capital, said.

“The Bank made similar noises last year before making a u-turn after inflation dropped in January, and the economic consequences of whatever form of Brexit we eventually see or don’t see are yet to be felt this year.

“We’ve also seen the temporary economic boost from Brexit related stockpiling and that now needs to unwind and is likely to suppress growth for a period.”

Read more: Assetz Capital attracts £10m into 90-day account in just one week

Law warned that even if the Bank of England does increase interest rates, it is unlikely to help bank and building society savers.

“Base rate rises are seldom fully passed on,” he added.

“Unlike borrowing costs to borrowers where base rates are nearly always passed on.”

Growth Street raises £10m from City investors London techies paid two thirds more than average worker in the capital

Related Posts

Michelle-Mone-photo-credit-Dan-Kennedy

Industry News, News

Michelle Mone’s crypto platform rebrands again

shutterstock_529618147

Industry News, News

Assetz Capital dips into provision fund to refund wind energy investors

shutterstock_1383378692

Global News, Industry News

Funding Circle urges US regulators to follow UK model

Popular posts:

  • More firms withdrawing P2P regulatory applications…
  • ThinCats announces closure of retail P2P lending platform
  • MoneyThing winds down platform
  • A new dawn: P2P lending gets set for…
  • RateSetter publishes living will terms
  • Platform failures enhance City investor focus on…
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2019 • Additional design by