Consumers fear interest rate rises, says Lloyds

According to responses from the survey of more than 2,000 people, some 80% expect interest rates to be higher this time next year than currently. Just 4% expect see rates falling over the coming year. Trevor Williams, chief economist at Lloyds TSB Corporate Markets, says recent rate rises have dampened confidence, with consumers “expecting the gloom to continue well into 2007.” Williams adds, however, the findings contradict what most economists see as a topping out of rates, possibly during the first quarter of next year. Also, despite fears of rising rates, there does not yet seem t...