Lord Turner says we are at a turning point for UK interest rates.
The Bank of England may have opted to keep rates on hold at today's monthly meeting, but the former head of the Financial Services Authority does not believe it will continue to keep rates at the historic low of 0.5% for much longer.
However, he told a packed hall at the Wealth Manager Conference and Awards this morning he would not be surprised that when rates do go up they stay at the 2/2.5% level for 'quite a long time' because of the 'deep debt overhang period' we are in.
He also warned if the UK does not rebalance soon it will have an economic model simply based on house prices and unsustainable debt.
Turner went on to talk about a Japanese-like deflation threat in Europe and the problems in China.