Poll unanimous for rate hold decision

Those hoping for a cut in interest rates that could potentially bring down the cost of mortgages will be left disappointed next week, economists have said.

A poll of experts by Adfero has found that all nine questioned believe the Bank of England's monetary policy committee (MPC) is set to keep the base rate at five per cent.

Two of the experts, Richard Snook from the Centre for Economics and Business Research and a spokesperson for Nationwide, said the likelihood of a hold was 70 per cent rather than a certainty and Howard Archer of Global Insight suggested the vote could swing towards a cut if more bad economic data emerges in the next few days, but the majority gave an unqualified prediction of no change.

A lack of another rate cut may prompt some to consider self build rather than taking on the cost of a mortgage.

Last month saw the MPC split in three directions over the decision for the first time since May 2006, which could add to the uncertainty over what decision may occur next.


© Adfero Ltd