Interest Rates Will Surge to 6.5% by 2015, Barclays Says
INTEREST rates will soar over the next five years despite feeble economic growth and rising unemployment, leading economists warned today.
A report by Barclays said rates will rise to 3.5% by the time of the London Olympics in 2012 and to 6.5% in 2015 to keep inflation under control.
The dramatic rise in borrowing costs -- 12 times higher than the present level of 0.5% -- will add hundreds of pounds to monthly mortgage bills.
It could be financially devastating for thousands of housebuyers entering the market now in the hope that rates will stay low for years.
Interest rates have not been at 6% since January 2001.
The report, by Michael …
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Publication information: Article title: Interest Rates Will Surge to 6.5% by 2015, Barclays Says. Contributors: Not available. Newspaper title: The Evening Standard (London, England). Publication date: February 4, 2010. Page number: 37. © Not available. Provided by ProQuest LLC. All Rights Reserved.
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