`Opinion divided` over interest rate decision

6 October 2008

There is no consensus of opinion as to what the Bank of England`s monetary policy committee will do when it meets to decide what the UK base rate of interest will be on Thursday (Oct 9th).

In a recent poll of 12 economists, seven predicted that rates will be cut - a move which may be welcomed by consumers facing personal finance problems as a result of rising inflation and high debt repayment levels.

However, five of the experts reported a belief that the committee will choose to hold the rate of interest at its current level of five per cent.

Richard Dodd, head of media and campaigns at the British Retail Consortium, stated: "We expect to see no change but we hope we are wrong and would like to see a quarter point cut."

Meanwhile, Paul Dales, UK economist at Capital Economics, commented: "No change ... though it will be very close."

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