Base rate stays level

The Bank of England’s monetary policy committee has today voted not to change the base rate.

In the run up to the meeting, expert opinion was divided on what decision the committee would make.

A total of 11 respondents to a Reuters poll of economists expected to see a rise, while Nationwide said there was a four in ten chance of such a decision.

However, it seems market analysts are more certain that there will be an increase in the base rate next month.

A spokesman for John Charcol mortgage brokers said his firm was expecting interest to go up in May.

This view was also taken by Barry Naisbitt of Abbey, who said “financial markets are expecting a further rate rise” because inflation currently stands at 2.8 per cent.

In January, the monetary policy committee made a shock decision to increase the base rate by 0.25 per cent, taking it to the current level of 5.25 per cent.

© Adfero Ltd

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