Economists argue over direction of interest rates

Two economists from the Bank of England's monetary policy committee (MPC) have expressed very different views about how the body should proceed in the near future.

David Blanchflower, the only member of the MPC to vote for a rate cut this month, told BBC Radio Ulster the economic situation is now getting worse, Bloomberg reports.

He said: "There's been fairly bad news on retail sales and on a number of things. So we're going to reconsider and take another vote."

However, Bloomberg noted that all 38 economists it had polled said August will see the base rate held again.

In contrast, the sole member to support a rate increase, Tim Besley, has warned against any loosening of the MPC's remit to keep inflation at two per cent.

Such contrasting views may make the prospect of base rate cuts in the near future more remote, lowering the odds of more mortgage rate cuts.

Those unable to get the mortgage they want may decide to opt for self build instead.