Rate decision 'too close to call'

This week's Bank of England monetary policy committee (MPC) decision on whether or not to cut interest rates again is too close to call, economists have concluded.

However, in news which will interest those planning their finances or considering the self build option for obtaining a home, the consensus is that even if rates are not cut this month they will be very soon.

In its analysis, the Times said issues such as the lower value of the pound, high oil prices and unclear retail data may make a hold decision marginally the most likely this month, but a cut would come in the spring.

Similarly, Global insight economist Howard Archer told the Yorkshire Post, the December retail figures may have a decisive effect on the decision, but "regardless" of this there would be a cut to 5.25 per cent "by February at the latest".

The MPC will announce its decision on Thursday Lunchtime (January 10th).


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