Experts predict interest rate hold

The Bank of England’s Monetary Policy Committee (MPC) will keep the UK’s base rate of interest at 0.5 per cent for at least another month, according to a panel of experts.

Defaqto’s Michael Baxter, Vicky Redwood of Capital Economics and Arek Ohinissian of the Centre for Economic and Business Research all predicted that the rate will remain at its current record low.

Indeed, Mr Ohinissian said his organisation is beginning to believe that the rate will not rise again until the start of next year.

“At this point we are estimating that they won’t start pushing it up until the first or second quarter of 2010,” he remarked.

Ms Redwood shared a similar opinion, claiming it could be 18 months or more before the interest rate increases.

The base interest rate decision will be announced on Thursday June 4th at noon. In May, the MPC voted unanimously for no change.

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