Rate cuts are months away, say economists

The majority of a group of economists has said the next Bank of England base rate move will be to cut rates rather than raise them, but predicted this will not happen for several months.

Five of the eight experts polled by the Evening Standard forecast the next move would be down rather than up, with two suggesting a rise will be necessary and one tipping rates to stay the same for many months.

However, those expecting a cut said this would come late this year or early next year, when the currently strong inflationary pressures in the economy have faded.

Such a situation would mean it could be several months before any major reductions in mortgage rates take place.

Those not wishing to wait for changes in the base rate may consider the self build option in the meantime.

May's inflation figures and the minutes of this month's monetary policy committee meeting will both be published next week, which may both confirm that there is little prospect of rates being cut in the near future amid rising inflation.