Interest rates will remain low for another TWENTY YEARS BoE expert warns

<pre><pre>Interest rates will remain low for another TWENTY YEARS BoE expert warns

A Bank of England lawmaker warned that low interest rates could last another 20 years, despite the rising costs of official loans.

Ian McCafferty, a member of the Bank of England's monetary policy committee, said borrowers should expect rates to stay below 5 percent, even though borrowing costs could rise in the near future.

In a farewell interview, McCafferty said savers should be prepared for "significantly" lower interest rates than in the years before the recession.

It was also discovered that only one in every 100 banks and development companies has passed on the increase in last week's interest rate to customers.

A Bank of England lawmaker warned that low interest rates could last another 20 years, despite the increase in official borrowing costs.

McCafferty told The Guardian: "It's too much to say never, that we will never return, but there is a 20-year horizon under which there will be factors that will keep it low.

& # 39; If the economy continues to evolve as it [the MPC] wait, we will not go back to 2 percent of inflation unless we have a modest but gradual reduction in the stimulus that has been provided. "

McCafferty, who will leave his post later this month, also said salaries could rise by almost four percent next year.

He said the increase was due to labor shortages, as Britain's unemployment rate fell to its lowest level in more than 40 years.

He said: "The labor market has shown significant signs of adjustment in recent months, with surveys and other measures pointing to labor shortages as a constraint to the growth of production."

The outgoing MPC member said there could be two rate increases in the next two years.

The governor of the Bank of England, Mark Carney, took a photo last week announcing an increase in interest rates

The governor of the Bank of England, Mark Carney, took a photo last week announcing an increase in interest rates

The governor of the Bank of England, Mark Carney, took a photo last week announcing an increase in interest rates

McCafferty's forecast came when it was revealed that only one in 100 banks and credit companies had approved the recent rise in interest rates to their clients.

The Beverly Building Society was the only one to commit to matching the Bank of England's base rate of 0.75 percent.

While HSBC and Barclays have increased their mortgage costs by increasing the rate, they have not yet transferred the increase to savers.

Lloyds and RBS have not yet raised interest rates for their clients, while only Santander from the banks of the "Big Five" has announced that it will approve the 0.25 percent increase.

The Financial Conduct Authority could intervene to force banks to pay a minimum interest rate, the Times reported.

Chancellor John McDonnell told the newspaper that banks "never waste the opportunity to cheat customers."

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