David Buik on UK interest rates, inflation and growth
The threat of UK interest rates rising in the next few months would be dangerous, said City analyst David Buik as the Bank of England held the historic low rate of 0.5% for the 56th consecutive month on Thursday lunchtime.
But Mr Buik warned that they "cannot remain at that level for an indefinite period of time",
With the the economy growing and unemployment falling, there is more talk of a rate rise in 2014, despite bank governor Mark Carney offering "forward guidance" with no rise planned until 2016.
But Mr Buik said holding down interest rates with inflation above 2%, could put a "huge burden on any government, whatever its political persuasion is, to deal with welfare and to deal with pensions."
07 Nov 2013