06-11-2007
Interest rates set to stay on hold
Interest rates are expected to remain on hold when the Bank of England's monetary policy committee (MPC) meets on Thursday, it has been claimed.
According to reports, a majority of economists expect interest rates to remain at 5.75 per cent for the fourth consecutive month.
Indeed, during a poll by Reuters, 92 per cent of respondents revealed their expectation that interest rates will stay on hold. "An early interest rate cut risks fuelling inflation if growth proves to be resilient over the coming months - and we lean towards the view that the Bank of England will remain in 'wait and see' mode on Thursday," said Howard Archer, chief UK economist at Global Insight.
Although the country's rate of inflation is currently below the two per cent target at 1.8 per cent, there are concerns that rising oil prices will increase inflationary pressures, reports the Western Mail.
Late last week, oil rose to a high of $96.24 (£46.14) a barrel in New York.
With interest rates still uncertain, now could be a good time to re-mortgage your buy-to-let.