Tuesday, January 11, 2011
The psychology of ZIRP?
A fascinating poll which was mentioned 'en passant' in today's Metro. While it's only a poll of over 2000 respondents, it provides an interesting insight into how almost two-years of 0.5% base rate has - unsurprisingly - effected an expectation of equally cheap credit. This can only end in tears. Karen Barrett, Chief Executive of unbiased.co.uk comments, â€œWith the base rate now remaining at a record low of 0.5% for 21 months, possibly 22 months after next Thursdayâ€™s base rate decision, our tracked research shows this has had a dramatic effect on homeownersâ€™ rate expectations."