An economist has said changes to interest rates are not expected until the end of this year.
Capital Economics said November or December may bring a rate change after “inflation fears fade [and] inflation peaks”.
UK economist at the research consultancy Paul Dales said: “The committee can certainly turn its attention to supporting the real economy which seems to be in dire states and will probably be more so towards the end of this year.”
The comments may be of interest to people with debt management issues who wish to stay up-to-date with interest news.
Currently, the interest rate stands at five per cent, which was held last month. The last change to the UK bank rate was on April 10th when it was reduced by 0.25 percentage points. The next decision on rates is due to be made today (August 7th).
Capital Economics provides financial research on the USA, Asia and Europe.
By Morwenna Kearns