29 August 2008
Economists have predicted that there will be no change in interest rates by the Bank of England next month. All nine experts polled by the online news agency Adfero said they did not expect to see an increase in the cost of borrowing in September. The Bank of England has left base rates on hold at 5% for four months now, providing some relief for consumers taking out secured loans. Its monetary policy committee is grappling with rising inflation and a sluggish economy, although concern over rising prices has taken a backseat recently amid calls for a cut in rates to stimulate growth. But economists including Jonathan Loynes from Capital Economics, Ross Walker from RBS and Martin Ellis from Halifax said a September increase is unlikely. A spokesperson for the Council of Mortgage Lenders said: "Until it is clearer that we are over the spike in inflation we don't expect the bank to be able to move to ease interest rates."
© 2008 Adfero Ltd
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