1 Jun

Interest rates expected to remain at 0.5%

Interest rates expected to remain at 0.5%

Three economic experts have become the latest in a long line of financial and property industry figures to predict interest rates will remain unchanged this month.

It is widely expected that the base rate will stay at its current level of 0.5 per cent for at least the rest of 2009, and now representatives from Capital Economics, Defaqto and the Centre for Economic and Business Research (CEBR) have added weight to that argument.

Defaqto economist Michael Baxter said it is unnecessary for a change to be made, while CEBR economist Arek Ohanissian thinks there is still some time to wait until the base rate moves from its current position.

Vicky Redwood, UK economist for Capital Economics, added that any movement will not occur for "at least another year or maybe even 18 months".

It is up to the Bank of England's monetary policy committee to decide the outcome of the base rate, and it will announce its verdict on Thursday June 4th.

The interest rate reached its current record-low figure in March and has been frozen ever since.

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