No cut, say economists

A poll of economists has found a unanimous verdict that the Bank of England's monetary policy committee (MPC) will not cut the base rate this week.

The Adfero survey of seven experts found no expectation that the body will ease the rate down from its five per cent level where it has been since the last cut in April, meaning that the prospect of lower mortgage rates will be lessened.

Only Nationwide offered any answer than no change, speaking in percentage terms with a 70 per cent chance of a hold, 20 per cent for a cut and ten per cent for an increase.

The poll is the third unanimous poll tipping no change, after all 38 economists contacted by Bloomberg and all 76 surveyed by Reuters gave the same verdict.

In the last vote, the MPC split three ways, with seven members supporting no change, one (Tim Besley) voting to raise rates and David Blanchflower supporting a cut.

With no prospect of a cut, those who would still find mortgages unaffordable may consider the self build option, which may be much less costly.