9 May 2008
The Bank of England's monetary policy committee (MPC) faced a tough task when trying to decide the base rate of interest, it has been claimed.
Abbey argued that the bank had to balance the prospect of rising inflation with "slowing output", something that probably influenced the MPC's decision to hold the rate at 5%.
But a publication in the form of the Inflation Report ought to provide more clarity for the body later this month, the service provider said, information that could give the Bank guidance.
If this shows possible lower inflation is supported, then changes may be deemed necessary sooner rather than later, it contended, news that may interest those with personal loans.
Chief Economist at Abbey Barry Naisbitt commented: "If the slowing in economic activity is interpreted as supporting lower inflation in the medium term, a further rate cut could be on the cards, possibly as soon as next month."
Last month, three of the members of the MPC voted against a cut in rates, while six voted for this move.