Bank of England interest rates 'to be frozen'

Posted: 02 Jun 2009 11:59:37 GMT

It has been predicted that the Bank of England interest rates will remain the same when a decision is made on the cost of borrowing this week.

The Bank's monetary policy committee (MPC) gathers on Thursday June 4th and three prominent economists have suggested that a rate freeze is likely.

Representatives from Defaqto, the Centre for Economic and Business Research (CEBR) and Capital Economics all foresee no change.

Ever since March this year, interest rates have been set at 0.5 per cent - a record low level.

Vicky Redwood, UK economist for Capital Economics, feels there will be no change in rate for "at least another year or maybe even 18 months".

Meanwhile Defaqto's Michael Baxter called any potential change unnecessary, and the CEBR's Arek Ohanissian does not think the interest rate will move up from 0.5 per cent for some time yet.


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