Bank of England interest rates 'to remain at 0.5%'

Posted: 08 Jul 2009 10:11:39 GMT

The Bank of England interest rates decision will be announced tomorrow - and financial data research group Defaqto is predicting no change from the previous three months.

Michael Baxter, an economist at the organisation, said that it is likely to be a "rather boring" Bank meeting.

Interest rates came down to 0.5 per cent in March - and the Bank's monetary policy committee has opted to maintain the cost of borrowing at this level ever since.

The decision has ensured many people with tracker mortgages have been able to benefit from lower monthly payments than before, especially as the base rate was in excess of five per cent two years ago.

Mr Baxter suggested that there is no reason to reduce the base rate any further than its current record-low percentage.

"It is certainly way too early for it to increase the rate of interest," he added.


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