HOMEOWNERS face the prospect of interest rates hitting 5 per cent within a decade, the outgoing Bank of On Friday, governor
Homeowners have enjoyed a historically low 0.5 per cent base rate for five years but the level has caused misery for savers. Sir Charlie said: "It might be reasonable to think that in that long term you would go back to 5 per cent, but it's probably quite a long way down the road."
It followed accusations that he had been behaving like an "unreliable boyfriend" by hinting at a rise this year, before appearing to back-pedal.
Sir Charlie said market expectations the first increase in interest rates would come at the turn of the year were "reasonable".
He added: "The market has rates going up to 2.5 per cent over next three years. That seems like a broadly sensible judgment."
Sir Charlie admitted that in the run-up to the crash, economists were "not sufficiently cognisant of the risks building up in the financial system".
HOMEOWNERS face the prospect of interest rates hitting 5 per cent within a decade, the outgoing Bank of
On Friday, governor