3 Apr

Base rate hold tipped

Base rate hold tipped

The Bank of England's monetary policy committee will hold the base rate next week, a new poll has predicted.

Adfero's survey of nine economists and representatives of financial institutions found unanimous agreement that there will be no change to the current base rate of 0.5 per cent.

Some of those questioned said that it would be technically difficult to lower interest rates any further and suggested the emphasis will be on quantitative easing from now on.

Defaqto economist Michael Baxter said: "There have been hints in the last couple of weeks about inflation not dropping off quite as rapidly as we expected," arguing that this would weigh against any more cuts.

However, he did not suggest rates may rise, which could mean that many of the best mortgage deals currently available will remain so.

A decision not to change the base rate would end a run of six successive cuts.

Before the first of these in October 2008, the level was at five per cent.

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