Rates to stay on hold
The Bank of England is widely expected to keep Bank Base Rate on hold at 4.5% this week, as economic growth is returning to trend and the housing market shows sign of a healthy recover.
Although many experts had previously suggested February as the date of the next cut in rates, recent data have suggested that the economy may be strengthening fast enough without the need for cheaper credit.
Governor of the Bank of England, Mervyn King, described economic growth as at “something close to its sustainable rate” last week, adding that inflation “is exactly on target”.
All 45 analysts surveyed last week by Reuters agreed that rates will remain static this month.