mortgage news – Rates will stay put
Interest rates will remain unchanged this month, a poll of nine leading economists has suggested.
Their unanimous verdict was for a rate freeze, with the Bank of England’s monetary policy committee leaving it untouched at five per cent.
Simon Hayes, senior UK economist at Barclay’s Capital, said rising inflation could force rates up, but warned that falling growth could create an output gap.
Economists from Lloyds TSB, Capital Economics, RBS, HSBC and Halifax all predicted “no change”. The spokesperson for the Nationwide suggested it was “80 per cent swaying towards no change and 20 per cent for a 0.25 base point hike”.
Howard Archer from Global Insight confirmed the consensus, claiming a rate fix was “most likely”. The Centre for Economic and Business Research’s Richard Snook was more definite, saying: “We are expecting a hold at the meeting next week.”
The European Central Bank has raised its interest rate to 4.25 per cent, it was reported.
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