More than three in five investors (62%) expect no change in interest rates within the next six months, research from Legal & General Investments has revealed.
The findings come from Legal & General Investments' annual What Matters Investment Index which aims to investigate the views of the everyday investor, and track how sentiment and behaviour changes over time.
This number is more than double the amount of investors who held this view in 2010, when only 30% expected no change in the interest rate over six months. In fact, in 2010, more than half (58%) of investors polled forecasted a rise within the following six months.
Yet despite this, more than a quarter (28%) of investors are confident that a rise is imminent, with 23% expecting it to be between 0.25% and 0.5% and one in 20 (5%) predicting it to be 0.75% or more. Only 1% expect to see a further drop, the same as in 2010.
Simon Ellis, Managing Director, Legal & General Investments, said: "The Bank of England has now held the base rate at 0.5% for 34 consecutive months with consumers expecting no change in the next six months.
"This has a significant impact on people who are struggling to achieve good returns on their savings. Many consumers will be looking for alternative options and looking towards new or existing investments in an effort to generate returns."
Article courtesy of Investor Today Sign up for Investor Today newsletter
