Saturday 27th of November 2010
Bank of England governor Mervyn King has repeated his assertion that there may be a rise in interest rates soon.
Speaking yesterday (November 25th), he told the House of Commons Treasury Select Committee the Monetary Policy Committee (MPC) is "ready to adjust policy" if this is required to keep inflation on course to reach its two per cent target in the medium term.
The phrase is the same one he used in his recent open letter to the chancellor after the latest inflation figures showed the Consumer Prices Index level to have climbed to 3.2 per cent.
If rates do rise, this could leave some struggling with their debt repayments and in such circumstances, IVA help may be necessary.
Only one MPC member - Andrew Sentance - has been voting for a base rate increase of late, arguing for a 0.75 per cent rise in recent months, but the words of Mr King may suggest this could change very easily.
By Hayley Jones
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- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA questions may get Brits into the savings habit
