MPC member says interest rates rise likely in Spring 2015

By Natasha Adamson

Spring 2015 is fast becoming the unofficial date for an interest rate increase, with a Bank of England Monetary Policy Committee member (MPC) being the latest to say that it was when rates were "most likely" to change.

Martin Weale, a member of the MPC which votes each month on whether to change interest rates told Sky News that an increase in spring 2015 was "the most likely path", though hinted that a change could come sooner if wages increased at a faster rate than anticipated.

The previous indicator that everyone was watching was the rate of unemployment, after Mark Carney issued his initial forward guidance policy saying an interest rate increase wouldn't be considered until unemployment in Northern Ireland and the rest of the UK fell to 7 per cent. A faster than anticipated decrease in unemployment resulted in Mr Carney refining his guidance to say that other factors in the economy would be considered, including wages. Mr Weale's comments suggest that wage increases is perhaps the most essential factor required for an interest rate increase to be triggered.

Mortgage borrowers and house purchasers in Northern Ireland and the rest of the UK have been able to take advantage of the record low 0.5 per cent rate of interest since 2008. In Northern Ireland in particular, many mortgage borrowers have taken advantage of the low rate to overpay on their monthly mortgage payments to reduce their negative equity problem after the property crash. For many first time buyers, the low rate has enabled them to get a foot on the property ladder despite rising living costs and stagnant wages.

If you are buying, selling or remortgaging a house in Northern Ireland, and require a property conveyancing solicitor in Belfast to handle the legal process for you, contact Wilson Nesbitt by calling 0800 840 9290.

To read more information about property conveyancing in Northern Ireland click here.




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