Economists divided over forthcoming interest rate decisions

Economists are divided over whether the Bank of England will raise interest rates again soon.

Of the 52 analysts surveyed by Reuters, five predicted the bank’s monetary policy committee would choose to raise the interest rate again in February.

A total of 46 analysts thought that interest rates would definitely be higher by the end of June.

Following the survey, the Financial Times asked several leading banks for their opinions.

Philip Shaw of Investec bank said it “remains unclear” what the MPC will do, citing a “large degree of residual uncertainty over the MPCs intentions”.

David Hillier of Barclays Capital spokesman David Hillier was equally uncertain, although he did add that if any consumers had been concerned about the last rate rise, there was little sign of anything to “put their minds at rest”.

Howard Archer, chief UK and European economist at Global Insight, said that the country is presently experiencing “high inflationary waves”, which may result in division among the MPC’s members over whether to raise interest rates further.

© Adfero Ltd

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