1
Jun
Interest rates expected to remain at 0.5%
Three economic experts have become the latest in a long line of
financial and property industry figures to predict interest rates
will remain unchanged this month.
It is widely expected that the base rate will stay at its current
level of 0.5 per cent for at least the rest of 2009, and now
representatives from Capital Economics, Defaqto and the Centre for
Economic and Business Research (CEBR) have added weight to that
argument.
Defaqto economist Michael Baxter said it is unnecessary for a
change to be made, while CEBR economist Arek Ohanissian thinks
there is still some time to wait until the base rate moves from its
current position.
Vicky Redwood, UK economist for Capital Economics, added that any
movement will not occur for "at least another year or maybe even 18
months".
It is up to the Bank of England's monetary policy committee to
decide the outcome of the base rate, and it will announce its
verdict on Thursday June 4th.
The interest rate reached its current record-low figure in March
and has been frozen ever since.
