Bank set to hold interest rates

The Bank of England is almost universally expected to hold interest rates stable when the monetary policy committee (MPC) announces its latest decision at noon.

Meeting yesterday and today the MPC is discussing the future direction of the base rate of interest in the UK economy, which presently stands at five per cent.

The Bank's hands are largely tied by rising inflation – which presently stands at 4.4 per cent on the government's consumer price index (CPI) measure. This is well ahead of the target of two per cent, making any cuts in the rate unlikely.

"Our expectation is there will be no movement in interest rates," commented a spokesperson for the Council of Mortgage Lenders (CML).