Interest rates tipped to hold
It is likely that the next interest rate decision by the Bank of England will see the base rate being held at 5.25 per cent, according to the latest poll of economists and financial institutions.
Lloyds TSB economist Jeavan Lolay, Global Insight chief economist Howard Archer and Ross Walker of the Royal Bank of Scotland all stated t Adfero that the rate would not be cut because of inflationary pressures.
This could be disappointing for those who hoped further interest rates would make some mortgage repayments cheaper.
However, a further reduction of the base rate could happen in May, Simon Hayes at Barclays Capital and Halifax chief group economist Martin Ellis suggested.
Further evidence that the interest rate will not be slashed comes from the history of the monetary policy committee.
Since its inception in 1997, the committee has not changed the base rate in successive months.
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