Rate hold prediction from 9 of 9 economists
Aug 29 2008
Interest rates will be kept on hold following September's monetary policy committee meeting, nine out of nine economists predict in a new poll.
Graeme Leach, chief economist at the Institute of Directors, explains that although the economy is 'clearly' slowing, the pressures caused by inflation remain in place.
He adds that this means the Bank of England's monetary policy committee is likely to be cautious and keep rates on hold.
A spokesperson from the Council of Mortgage Lenders adds that the situation facing banks is difficult and that the UK may face a 'significant' economic downturn.
'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,' he explains.
Other analysts who agreed with these verdicts included Jonathan Loynes from Capital Economics, Richard Dodd from the British Retail Consortium and Rogbert Snook from the Centre for Economic and Business Research.
The Bank has not changed the interest rate level since April, when it was lowered by 0.25 per cent to five per cent.