Interest rates

Meeting: 
MQT on 2014-10-22
Session date: 
October 22, 2014
Reference: 
2014/3990
Question By: 
Fiona Twycross
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

An increase in interest rates would clearly have a significant impact on London, particularly for homeowners. The 16th annual Geneva Report, published in September, forecasted that interest rates across the world will have the remain low for a "very, very long" time to enable households, companies and governments to service their debts and avoid another economic crash. What is your view of the impact this would have on London?

Answer

Answer for Interest rates

Answer for Interest rates

Answered By: 
The Mayor

As set out in the minutes from the most recent meeting of the Bank of England’s Monetary Policy Committee, given the likely persistence of headwinds weighing on the economy, when interest rates do begin to rise, they are expected to do so only gradually and are expected to remain below average historical levels for some time to come.  This should help to sustain growth and employment in London (and the UK).