Base rate will finally increase in 2015 after six years at 0.5%, says CBI

The Bank of England will finally increase its base rate in the first three months of next year, to 0.75%, the CBI is predicting.

It will be the first change to the base rate since March 2009, when the Bank initially set the rate at the current 0.5%.

The CBI previously believed the Bank would wait until July-September 2015 before raising the base rate, the BBC reports.

Numerous commentators are expecting Bank of England governor Mark Carney, pictured above, to make the rate announcement on Wednesday when the Bank releases its inflation report.

The CBI’s prediction comes as it upgrades its growth forecast for the UK to 3% in 2014 today, although it is cautioning about spiralling house prices and electioneering.

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