21st December 2015
The UK is unlikely to witness the cost of borrowing rising too quickly, former Prime Minister John Major has said.
His comments follow the US’s decision last week to raise interest for the first time since 2006, by 0.25% to 0.5%.
Speaking on the BBC’s Andrew Marr Show, Sir John said: “The Fed have just ticked up interest rates a little. I think this will be a very slow process.
“I don’t think we’re going to suddenly see a huge spiral in interest rates.”
UK interest rates have been at their historic low of 0.5% since 2009 but Major is not expecting any big changes, and said he doubted the Bank of England would rapidly raise interest rates.
“I know many mortgage owners in particular will be concerned about that,” he added.
Bank of England governor Mark Carney has previously stated that interest rates in the UK will stay low “for some time”. Generally economists and commentators are not expecting any hike until at least mid-to-late 2016.