Seven in 10 (69%) Moneywise.co.uk users want interest rates to rise in order to bump up cash savings rates.
The Bank of England’s base rate has stood at 0.25% since August 2016. Prior to this it was held at 0.5% for over seven years.
While a low base rate is good for mortgage borrowers whose loans are linked to it, it’s bad for savers as it means banks are less likely to offer high-paying interest rates on savings and current accounts.
However, at its latest base rate meeting earlier this month, the Bank of England’s Monetary Policy Committee (MPC) said that monetary policy “could need to be tightened” if projected inflation increases come to pass.
The Bank has predicted inflation to reach over 3% by October this year, which could potentially lead to an interest rate adjustment as early as November – inflation currently stands at 2.7%.
As a result, we asked our readers if they want interest rates to rise, and the resounding response was “yes”, with 69% citing savings rates as the reason and 6% saying they’d like rates to rise for a reason other than the impact on cash savings.
Just a fifth (20%) of the 1,023 Moneywise users who voted were against an interest rate rise. This was made up of 15% who don’t want rates to rise as it’ll push up mortgage repayments and 5% who don’t want a rate rise for another reason.
A further 4% don’t mind what happens either way, while 2% are undecided on whether rates should rise.
See the full poll results in the pie chart below.