3 June 2008
The base rate of interest is likely to sit at about 5% by the end of the year, the Centre for Economics and Business Research (CBER) has noted.
Currently the rate stands at 5%, with the Bank of England's monetary policy committee (MPC) having held it at a meeting in May.
Economist at the CBER organisation Charles Davis stated that inflation predictions mean that rates may not dip to the levels many previously predicted, which may concern those with credit cards.
While at the beginning of this year economists suggested that the base rate could fall to 4.25%, a slowdown in the economy has had an impact, Mr Davis asserted.
He commented: "I think we are now probably looking at 4.75 to 5% by the end of the year [and] only one more cut by the end of the year."
Inflation in recent times has been fairly persistent, he remarked, so this is influencing the direction the MPC will take in future months.