Homeowners Should Prepare for Interest Rates of Five Percent, Warns Bank of England Markets Chief Paul Fisher

In an interview with The Daily Telegraph, Paul Fisher, the executive director of markets and a member of the rate-setting Monetary Policy Committee (MPC), said central bank policymakers would like rates to increase as much as tenfold from their current historic low of 0.5pc as soon as possible.

“We hope people are aware that interest rates at some point will go up again and that they will head back to a normalised position,” he said. Confirming that “normalised” rates would be “around” 5pc, he added: “What we need to do is to trigger the mindset in people that that’s where rates will eventually go back to".'

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