According to an economic forecast, the interest rates in UK will be kept at its record low of 0.5% by the Bank of England till 2014. According to the experts, the interest rates will be kept low anyway to balance the government spending cuts. This point of 0.5% should be considered as the normal rate to tackle with the economic crisis.

The start of rise in the interest rates is expected from the next year, according to the Office for Budget Responsibility. But it has also said the rates have stayed at 0.5% since 2009 March. The UK government has implemented the cuts to save at least 40 billion euros and expects that fund to be used in the growth of the country.

At the same time, as per the experts, the growth of UK will not touch the growth rate of 1% but it would increase in the next years to provide a strong recovery for the UK. A report says the Consumer Price Index (CPI) will stay well above the target of 2% of Bank of England in the next 18 months because of the rises in Vat and high energy prices.