9 March 2006
The Bank of England's Monetary Policy Committee has announced that it will leave the base rate of interest unchanged at 4.5%.
The decision means that rates have stayed the same for seven months. The last rate change was a 0.25% drop in August 2005.
Chief economist at HSBC, John Butler, said that it now appears certain that the interest rate will remain unchanged for the next few months.
Mr Butler predicted that the rate may begin to fall in August. The Bank of England is currently asking itself "where do they go from here", said Mr Butler.
Conflicting economic indicators suggest that the bank will face "a bit of a dilemma" over the coming months.
"I still think that the cut is more likely in the long run," he added, however.
Mr Butler had earlier suggested that a rate cut may be due in May but said this could be "a little premature".
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