5 August 2008
Interest rates are likely to remain unchanged for "quite a few more months to come", according to the UK Chief Economist at Global Insight. Howard Archer said people with secured loans may not see any adjustments in borrowing rates until the end of the year, when there is the possibility of a reduction. "Over time very weak economic activity and rising unemployment should help to keep a cap on inflation pressures and that should eventually allow the Bank of England to cut interest rates," he explained. But he added that with inflation expected to be running at close to 5% later this year, such a move is unlikely to come in the near future. The interest rate currently stands at 5% following a 0.25% cut in April. The next monthly decision is due to be made on August 7th. Paul Dales, UK Economist at Capital Economics, also predicted that the Bank of England would hold the base rate at its current level, claiming that in the "confusing" economic climate it is the "easiest" thing to do.
Make sure you're getting the most from your current account. uSwitch.com is impartial and comprehensive and can help you find one that will pay you the best interest rate on your credit balance. Compare current accounts and apply for the best banking rates in minutes, for free.
Start switching
< Back to market news
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.