UK interest rates have been kept unchanged at their record low of 0.5% by the Bank of England.
Outlining the Bank of England revised forward guidance policy, the governor said ;
"Rates are then projected to rise to 2% by early 2017. Beyond 2017, the message from the Bank is that 'even when the economy has returned to normal... the appropriate level of Bank rate is likely to be materially below the 5% level set on average by the [Bank] prior to the crisis'"
Low expectations: Base rate is seen rising sooner than forecast last summer by the money markets, but the bank of England said it will rise gradually and is unlikely to return to 5 per cent for a long time.
One group undeniably hit very hard by Funding for Lending has been savers. Returns on savings accounts have dived since its launch in a race to the bottom that has seen big cuts in the best deals on offer.
The best easy access savings rate now stands at just 1.5 per cent, whereas before the launch of Funding for Lending savers could get between 2.5 per cent and 3 per cent.
Mind the gap: How base rate and inflation have moved over the past 24 years - the dramatic slashing of rates since the financial crisis shows how far from normal we are.
Asset Life Plc ("AL") offer bonds with fixed interest rates. A detailed presentation of each bond offered can be found in the respective Information Memorandum, which has been approved for promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 ("FSMA"). This website is not intended to be a source of advice or credit analysis and the information contained herein does not constitute investment advice. Therefore, any decision in connection with funds, instruments or transactions described or mentioned within this website must be made solely on the information contained in the relevant Information Memorandum and no reliance should be placed on any other representations.
Lenders should note that repayment of the bonds offered by Asset Life Plc, and the payment of interest on the bonds, depends on the performance of the investments made by Asset Life Plc to various small and medium-sized enterprises. In the event that these borrowers default, lenders may lose some or all of their savings. Lending to the bonds of Asset Life Plc is therefore speculative and involves a degree of risk.
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