Jonathan Tyce (Senior Banks Analyst, EMEA, LATAM & Asia Banking, Bloomberg) shares some of the data gathered by Bloomberg Intelligence on predicted interest rate changes throughout 2018 up to 2020 and how this might affect consumers. Some key points:
- Inflation and wage growth erosion will continue to be a bigger problem for UK consumers than interest rate rises
- Rate rise is predicted to be slow, rather than abrupt
- Consumer confidence and retail sales will continue hand-in-hand
- Credit supply will tighten
