Interest rates set to rise?

Back in August 2013, the new Governor of the Bank of England gave his "forward guidance". He said that interest rates would not be raised until the jobless total fell below 7% and that it was not expected to do so before 2016. However, leading economists are now saying that unemployment will hit the Bank of England"s threshold within months, triggering expectations that interest rates are set to rise almost two years ahead of where the Bank forecast them to be only four months ago say Harris & Co accountants Northampton who offer specialist accountancy services to small and medium sized businesses in the Northampton area.

The EY Item Club, one of the country"s leading forecasters says it expects the jobless rate to hit the 7% threshold this Spring, possibly as early as March.