The days of high interest rates are over and the cost of borrowing is unlikely to rise above 3% for decades, the Bank of England predicted yesterday.
In a blow to savers, the Bank said that it would be many years before rates in Britain returned to the long-term trend before the financial crisis hit, when the figure was 5%.
The prediction came as the base rate rose above 0.5% for the first time since March 2009. Within hours of the rise being revealed, Barclays announced an increase in its standard variable rate mortgages.
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