Expert tips rate to be held

The Bank of England’s Monetary Policy Committee (MPC) will keep the base rate at its present level when it meets this week, it has been predicted.

Economist at financial data research firm Defaqto Michael Baxter suggested the only alteration to the status quo the MPC could make would be to add more quantitative easing.

He said: “I think it will be a surprise if they did anything, I don’t see the rate of interest going up.”

A quantitative easing increase could take place because last month saw the Bank’s governor Mervyn King argue for a larger rise in this than the majority of the MPC would support, which may lead to him pushing for more this week.

If the base rate is held steady, this could mean the best rates available on the market remain in place for consumers to apply for.

Last week, partner relationship manager at online change of address service Jon Brown said there may be more very low mortgage rates available soon.

He suggested HSBC’s decision to offer a 1.99 per cent deal could “spark” its competitors into following suit.

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