Interest rates could be held until 2011 - Skandia

Skandia Investment Group (SIG) says interest rates are likely to remain on hold until at least the autumn, with tighter monetary policy after the general election delaying an increase. SIG senior fund manager Ryan Hughes thinks a cautious outlook on behalf of the Bank of England could mean rates may not even rise until next year. "The Bank may want to wait until it has seen two quarters of above trend growth, which on its forecasts will not happen until January 2011," he says. But Hughes thinks once rates do rise they will do so sharply. "The current level of interest rates is t...