Finance news from Loans Park

London (Loans Park) July 31, 2007:There are hints in the financial market that there is going to be a further increase in the ‘cost of borrowing’. It seems that almost 79 per cent of the UK customers who took part in the poll are convinced that the scale of borrowing rate will swing up due to another increase in the base rate.

However, a motley crew of people (about 5 per cent) still hold on to the belief that there would be a fall in the base rate in the coming months.

Trevor Williams, Chief Economist at Lloyds TSB Corporate Markets is of the view that the recent interest rate hikes in no way restore confidence among the consumers that there was going to be some stability in the base rates. Most of them are of the opinion that there is at least one more hike in the near future.

Looking at the bright side, he commented that this alertness among the consumers means that consumers are prepare to pay higher mortgage and secured loans payments.

The last base hike was in July when the Monetary Policy Committee (MPC) of the Bank of England decided in favour of another increase in the interest rate.