The state of interest rates

Nov 15, 2015 | Tony Byrne's View

I think we can safely say that we are all keeping our ears pricked for any news on changes to interest rates, and have been doing so for some time! We thought the suspense might be over when there was a clear indication that rates would be rising in the new year, but a shift in stance has recently been reported suggesting that there is no end in sight for the record low interest rates that we are experiencing.

Some economists have suggested a rise will not be on the cards until April 2017, because of the activity of other international economies such as China and the USA. With such low interest rates prevailing, the cash savings and current accounts provided by high street banks now look less and less appealing, and there has been a notable increase in those seeking better returns via investment. If you have large cash holdings you will probably be receiving almost no interest.

Now is the time to consider investing that cash to try and achieve better returns, especially if low interest rates are here to stay! The value of your investment can go up or down so you may get back less than your initial investment.