Interest rate ‘likely to stay the same’

Tomorrow’s Bank of England Monetary Policy Committee (MPC) meeting is likely to leave the interest rate unchanged, according to one expert.

Economist at financial data company Defaqto Michael Baxter said that it is “way too early” to start increasing the rate again and the monthly MPC assembly will probably be “rather boring”.

He remarked: “There is no reason as yet to think that the bank has got to do more quantitative easing than it has already announced.”

It is not necessary for the rate to be further reduced, meaning no change is the most likely decision, Mr Baxter added.

The current base rate is 0.5 per cent and has remained at that level since March.

In recent news, the British Chambers of Commerce announced that economic survey results for the second quarter of 2009, which were published on July 7th, suggest that the worst of the recession is beginning to ease.

By Francis Finch