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SELL YOUR HOME QUICKLYThe Bank of England denies imminence of a further rate hike
According to spokespeople from the Bank of England, recent talks about the interest rate was intended as a neutral discussion, and not as an indication that the Monetary Policy Committee (MPC) is considering a further interest rate hike, reports Times Online.
Fears of another interest rate hike was fuelled earlier this week when figures indicating a 3.3% increase in inflation was published, and when minutes of a MPC meeting where the need for an interest rate increase was discussed also came out. These documents revealed that one MPC member voted in favour of decreasing the interest rate, while the other eight thought rates should remain unchanged for the moment.
According to a survey by financial data firm, Ideaglobal.com, experts contend that the interest rate will remain at 5% for the rest of the year. There are others, however, who predict a cut in light of the economy’s current weakness, and others still who anticipate an increase.
Ria Capital Markets spokesperson, Nick Stamenkovic, said, “I don’t think on economic grounds there is a case for a rate hike”; while JP Morgan’s Allan Monks is of the opinion that, “We expect the MPC will raise rates alongside the August inflation report.”