5 June 2008
It is unlikely that the Bank of England will alter the base rate of interest this week, one expert has claimed.
Chief European and UK Economist at Global Insight Howard Archer noted that the Bank's monetary policy committee (MPC) will adopt a cautious approach, something that could affect those with current accounts.
He said that this is the case because of the pressure of inflation on the economy and that this is likely to have an impact on the MPC's decision.
While rates could drop later on in the year, Mr Archer contended, prices are still being raised by firms at present as they look to protect profit margins.
"The Bank of England will tread extremely carefully on the interest rate path for the time being," he commented.
Last month, the Bank held the base rate of interest at 5%, following cuts in April, Febraury and last December. In 2007, there were a number of interest hikes.
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