Carney's interest rate rise threats were 'too aggressive'

By Natasha Adamson

The governor of the Bank of England, Mark Carney, has been criticised for causing confusion by his "forward guidance" on interest rates, with his suggestion last summer that they would increase towards the end of the year described as being "too aggressive".

The comments were made by global chief investment officer of equities at Fidelity, Dominic Rossi, who added that the Bank of England had demonstrated a "poor" understanding of why inflation was so low. Mr Rossi believes that interest rates are not likely to increase in the near future, and highlighted the difficulty of forward guidance on interest rates when the world is "highly unpredictable and where external forces can derail your economic forecasts pretty quickly."

Mortgage borrowers and property purchasers have seen anticipated dates for an interest rate increase come and ago over the past few years, and the 0.5 rate has remained for a record seven years. Mr Carney's most recent speculation in the summer of 2015 sparked a surge of remortgage activity, as borrowers sought to switch to a low rate fixed mortgage deal ahead of an end of year rate rise. That prediction has since been revised and economists are now considering that the rate freeze could continue into late 2016.

If you are buying a property in Northern Ireland, or selling or remortgaging an existing home, contact one of the property conveyancing solicitors at Wilson Nesbitt in Belfast or Bangor for advice on the legal process involved by calling 0800 840 9290.

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