Mark Carney warns that UK interest rates could rise sooner than expected

Bank of England governor Mark Carney has warned that interest rates could rise sooner than expected.

A rate rise would be welcome news for insurers, who have suffered poor returns from their bond-heavy investment portfolios in recent years because of persistently low interest rates.

But a rise would cause insurers short-term pain because it would devalue the bonds currently in their portfolios.

According to the Financial Times, the financial markets currently expects interest rates to rise above their current 0.5% level in spring 2015.

But in a speech at Mansion House last night Carney said that the first rate rise “could happen sooner than markets currently expect”.

The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
Many congratulations to all the worthy winners and as always, huge thanks to our sponsors for their support and our judges for their expertise.

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