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Investors ‘expecting interest rates to remain level’  January 31st, 2012

Investors 'expecting interest rates to remain level'

Investors with Legal & General have stated they think the current interest rates will remain in place for at least the next six months.

Carrying out research among its clients, the company found that 62 per cent of investors do not forecast there to be any change in the rates until the middle of this year.

This figure is more than double the number who held the same view in 2010, when just 30 per cent expected there to be some change to the level of interest rates over the six months ahead.

In addition, 58 per cent of those questioned two years ago predicted there would be a rise in interest rates over the coming half year period – something which did not happen.
The research was conducted as part of the Legal & General Investments' annual What Matters Investment Index, which is carried out to discover the views of everyday investors and keep track of how their attitudes and behaviours alter over the course of the year.

At the present time, the Bank of England has kept rates at the record low rate of 0.5 per cent for the past 34 months.

Simon Ellis, managing director of Legal & General Investments, commented on the lack of change, stating: "This has a significant impact on people who are struggling to achieve good returns on their savings. Many consumers will be looking for alternative options and looking towards new or existing investments in an effort to generate returns."

Earlier this month, Legal & General considered the options available for the BRIC nations over the coming decade and suggested the countries are only likely to see rises to the levels of growth that they already experienced in the past ten years. 


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