Interest rates to hold steady, says expert

5 August 2008

With the next interest rate decision to be made this week (August 7th), consumers may be wondering what to expect from the Bank of England`s Monetary Policy Committee (MPC).

However, according to a leading financial analyst from Global Insight, the Bank is unlikely to change interest rates for several months before cutting them.

UK chief economist at the company Howard Archer said: "I think they will probably keep interest rates unchanged for quite a few more months to come but I do expect the next move to be ultimately downwards."

Mr Archer went on to say rising unemployment rates and slow economic activity may "keep a cap on inflation pressures" which would ultimately see the Bank reduce rates.

The comments may be good news for people facing debt management issues and wish to keep track of banking rates.

Currently the interest rate is five per cent, reduced by 0.25 percentage points in April 2008.

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