No change predicted for June interest rate decision
As the June interest rate meeting by the Bank of England's monetary policy committee (MPC) draws near, a poll of economists and financial institutions has revealed that a hold will be the most likely outcome.
Out of the eight respondents to the Adfero poll, all forecast no change to the five per cent base rate of interest, which is news that could affect mortgage borrowers.
According to one economist, Howard Archer of Global Insight, inflationary pressures have halted any possibility of further rate cuts.
"With inflation likely to approach four per cent this summer … the Bank of England will tread extremely carefully on the interest rate path for the time being," he said.
Only Zoe Stevens at Nationwide suggested that there would be a 20 per cent chance of quarter-point cut next week when the MPC holds its monthly two-day meeting.
The last base rate reduction was in April, with cuts also made by the MPC in February and December last year.
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