Steve Smith looks at data from the Bank of England.
Whilst the UK base rate remains at 0.5% per annum there is increasing speculation about the timing of the first increase with Q4 this year or Q1 in 2015 appearing to be the general consensus.
The minutes of the 5th June Monetary Policy Committee meeting show that the vote to hold at 0.5% per annum continues to be unanimous.
GBP LIBOR continued its gradual rise in June reflecting a trend that started in Q4 of 2013.
1 year LIBOR rose by 0.02% per annum during June ending the month at 0.975% per annum. 6 month GBP LIBOR increased by 0.01% to 0.675% per annum in June. 3 month GBP LIBOR did not move in June remaining at 0.55% per annum
Based on the trend in GBP LIBOR there is an increasing likelihood of the first increase in UK base rate happening before the end of 2014.
