MPC are likely to keep 5.25% base rate, say economists

News Article - 03 March 2008
Category: Business

The monetary policy committee (MPC) are likely to keep the base rate the same if leading UK economists predictions are correct, it has been revealed.

According to an Adfero poll, all eight of those questioned concluded that following last month's quarter-point cut, the 5.25 per cent rate will remain static at March's meeting.

"With it being the month of the UK budget, although that shouldn't influence the Bank's decision, they may want to wait to see what factors and considerations are taken into the Budget, said Lloyds TSB economist Jeavon Lolay.

Other respondents noted that the MPC may wait to make any further cuts until the gross domestic product results for the first quarter of the year are fully known.

The results of March's meeting will be announced at 12:00 BST March 6th, following a two-day consultation.

Research by skills sector council e-Skills UK has found that by investing more in IT, such as new accounting software, the UK economy could be boosted by up to £35 billion.

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