2 September 2005
Next week the Bank of England is to hold its monthly meeting over interest rates.
In August rates came down to 4.5 per cent, and speculation is rising over the next move.
Many experts expected the cut last month, but minutes from the meeting showed that the committee in charge only narrowly voted for it by five votes to four, so the next decision remains uncertain.
A Reuters poll of leading economists found their opinion is that interest rates will hold steady this month.
More than half of those questioned in the survey believed a cut would eventually come with 36 per cent predicting that the Bank will lower rates in the last three months of the year and a further 36 per believing the cut will come in 2006.
A number of factors will influence the decision makers including more upbeat forecasts for economic growth, which may encourage them to hold rates, and predicted rises in inflation, that could bring up rates.
If the decision to cut rates comes next week it will make borrowing cheaper but the speed at which banks, building societies and other loan providers pass on the savings to customers varies and some do not change rates at all.
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