Economists predict no change in interest rate

Most economists are not expecting to see any change made to the base rate following Thursday’s meeting of the monetary policy committee (MPC), it has been reported.

A survey conducted by Bloomberg found that 57 out of 66 economists they questioned did not expect to see any adjustments in the interest rate tomorrow.

In a similar survey conducted by Reuters, just nine of the 64 economists questioned felt a rise in the base rate to be likely on Thursday.

However, a majority did believe that the base rate would rise a quarter per cent by summer, to reach 5.5 per cent.

And Howard Archer, chief economist at Global Insight, said he feels a change in the interest rate will be unlikely at this meeting of the MPC.

“We expect the MPC to hold fire on ThursdayÖgiven a general desire to wait a little longer to see what impact the relatively quick three interest rate hikes enacted since last August are having on economic activity,” he said.

There have been three rises in the base rate of interest since last August, taking it to the current rate of 5.25 per cent.

© Adfero Ltd

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