Interest rates expected to stay on hold

Manufacturing News, Source : TheManufacturer.com
Published : 08 Mar 2007 9:48
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Manufacturers are hoping for a second month's reprieve when the Bank of England announces the outcome of its latest meeting on interest rates at midday.

Despite expectations that the cost of borrowing will rise in the next few months, economists do not expect a rate hike this month.

However, many analysts point out that there was a similar consensus prior to the Bank’s surprise quarter point rise in January.

But with UK inflation at 2.7 per cent – above the Government’s two per cent target – further rate rises are expected, with many analysts pointing to May for future rise in the cost of borrowing.

 

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