HOMEOWNERS face interest rates of around three per cent within three to five years, according a senior figure at the Bank of Outgoing deputy governor
"The Bank rate averaged about five per cent in the decade or so before the crisis,"
Members of the Bank's monetary policy committee voted unanimously in favour of leaving interest rates on hold at the same level since 2009 earlier this month.
But minutes of the meeting showed there was less agreement on the course for future rates.
The first hike had been not expected until the second quarter of next year, or late in the first quarter.
He said: "There's a case for moving gradually because we won't be quite certain about the impact of tightening the Bank rate.
"It might not operate in quite the same way as before the crisis. So that's an argument for being a little bit cautious, moving in baby steps to avoid making mistakes.
"But of course if you want to pursue that strategy you need to start taking those baby steps a bit earlier, otherwise you end up being behind the curve. But there are arguments on the other side."
HOMEOWNERS face interest rates of around three per cent within three to five years, according a senior figure at the Bank of
Outgoing deputy governor