HESTER: EXPECT TWO RATE RISES IN 2011

RBS expects the Bank of England to raise interest rates twice this year even though the economic and market environment remains uncertain, chief executive Stephen Hester said yesterday at the Morgan Stanley European Financials Conference. He said that “two steady rate rises” should boost RBS’s net interest margin. RBS said it was keeping its target of having a return on equity of more than 15 per cent.

Picture: REUTERS