View the article online at http://citywire.co.uk/money/article/a881538
Turner warns of low rates and peer-to-peer losses
Former chairman of the City regulator, Lord Turner, predicts low interest rates until 2020 and forecasts trouble from peer to peer lending.
The former chairman of the Financial Services Authority (FSA) Adair Turner has warned the UK could be stuck with low interest rates 'almost indefinitely'.
Interest rates have been set at a record low level of 0.5% since March 2009. Speaking to the BBC Lord Turner said any rate rise would be extremely gradual.
'Interest rates in the UK may not go beyond 2% by 2020,' he said.
He also voiced grave concerns over the future fallout of peer-to-peer lending.
With peer-to-peer lending, savers willing to lend are matched with those who want to borrow via an online platform.
He said: 'The losses which will emerge from peer to peer lending over the next five to 10 years will make the bankers look like lending geniuses.'
He also warned that the forthcoming referendum on whether the UK should leave the EU was creating great political and economic uncertainty.
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by Michelle McGagh on Dec 07, 2016 at 17:17