Interest rate rise “cannot be ruled out”

Howard Archer, chief UK and European economist at Global Insight, maintains that the MPC could vote to increase the base rate of interest nationwide when the decision-making meeting is staged on Thursday April 5th.

Any rise in the base rate would further increase the financial pressures on the millions of Brits facing debt management and credit card debt problems.

However, Mr Archer does suggest that the MPC looks likely to “hold fire” this time around and save another increase for May.

“The Bank of England’s MPC has sprung a number of surprises in recent months, be it in the actual timing of interest rate rises or in their voting patterns,” he commented.

“Another surprise cannot be ruled out next Thursday and the recent testimonies by Mervyn King and other MPC members to parliament have reinforced our belief that one more interest rate hike remains very much in the pipeline.”

The MPC voted to increase the cost of lending in Britain in August and November 2006 and in January of this year.