Market Comment

“Good news for borrowers but bad news for savers - this is a phrase I expect we’ll get used to hearing in the coming months and, if Ernst &Young is to be believed, years. It has made a bold prediction that the Bank of England base rate will remain at 0.5% until 2014”, comments Mark Harris, Managing Director. “The economic recovery remains pretty fragile and any rise in the base rate now could threaten a sustained upturn. Also, I expect inflationary pressure to subside in the coming months.”