5 Aug

Poll verdict says no rate rise this week

Poll verdict says no rate rise this week

Fears that an interest rate rise might take place this week - pushing up the cost of mortgages as a result - may be receding as poll after poll shows that economists do not expect such a decision to take place.

With the Bank of England's monetary policy committee (MPC) due to decide the policy on rates this Thursday, a poll of seven economists and institutions by Adfero found all were agreed that there will be no change from the current five per cent rate, despite the recent increase in inflation.

This follows the unanimous verdicts of all 38 economists polled by Bloomberg and all 76 interviewed by Reuters, each of whom said the base rate will stay put.

April was the last month in which the rate changed, being cut from 5.25 per cent to five per cent.

The most recent meeting of the MPC saw a three-way split, with David Blanchflower wanting the rate cut and Tim Besley advocating a rise.

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