Investors do not anticipate base rate rise until at least 2015

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More than half of investors do not anticipate a rise in the Bank of England base rate until at least 2015, according to the latest Halifax Share Dealing Market Tracker.

The survey found that 53 per cent of respondents are not expecting a hike for a further two years while 15 per cent of those polled forecast rates to remain locked at their historic low until 2016.

However, 28 per cent believe rates will rise within the next 12-18 months with a further six per cent anticipating an increase during 2013.

Additionally, investors are showing greater confidence in the FTSE 100 with 59 per cent of the poll expecting it to rise in the next six months, up from May’s results, when 40.7 per cent of respondents were anticipating an increase.

Even more investors are expecting an increase over the next 12 months, with 75 per cent anticipating such a pick-up.

Halifax Share Dealing managing director Damian Stansfield says: “With the economy still in the early stages of recovery, only a minority of investors are expecting interest rates to rise within the year.

“Since the new Governor assumed his role, and with July’s MPC meeting seeing members voting to retain current quantitative easing levels, any investors sitting on the fence are likely to have been given greater confidence that a rate rise will be later rather than sooner.”