A full 100 per cent of economists in an Adfero survey believe there will be no change in the base rate following this month’s monetary policy committee (MPC).
The current rate stands at five per cent after a 0.25 per cent reduction in April. The next decision will be announced at midday on May 8th.
Simon Hayes, UK economist at Barclays Capital, claimed that the MPC is going to be more concerned with inflation following the fall in value of the pound and events in the economy.
“We haven’t had such bad news on economic activity to justify a cut this month,” he said. “But I do think they will cut next month or certainly within the next two months though.”
Howard Archer, chief European and UK economist at Global Insight, added that it is a close call and further weak data could push the MPC to make a cut this month.
A Nationwide spokesperson claimed there is a five per cent chance that the MPC will opt to reduce the base rate by 0.05 per cent.
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