Cost of borrowing ‘could increase in March’

Simon Ward has made his comments ahead of an announcement on the issue by the Bank of England’s monetary policy committee (MPC) next week and the economic expert suggests a fourth increase since August 2006 is not out of the question.

An increase in the cost of borrowing money nationwide to 5.5 per cent would further put pressure on the finances of those Brits who are looking to clear debt quickly, but they may decide to accumulate more evidence before taking such a step, Mr Ward maintains.

“I am assuming the MPC majority will be prepared to wait for more evidence, but another 5-4 split looks quite possible,” he made clear.

Last month, the two members of the rate-setting MPC voted to raise interest rates, while seven others felt such a measure was not warranted after a quarter point rise in January.