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Bank rates predicted to remain the same
08/05/2008 11:34:00
Despite increasing economic pressures, the Bank of England (BoE) is expected to keep interest rates the same, according to analysts.
The results of surveys released this week have indicated that the economy is being squeezed even more with consumer confidence dropping further and house prices supposedly falling at their fastest rate for 15 years.
Following the BoE's Monetary Policy Committee's (MPC's) decision to cut interest rates to five per cent last month, it is facing calls to make another reduction.
Howard Archer, chief UK economist at analysts Global Insight, said that the decision to cut interest rates is becoming closer to call each day.
"The interest rate decision is finely balanced and impossible to call with any degree of confidence."
"The recent stream of weaker data suggests the UK economic downturn is deepening and widening," he said.
The MPC is due to make an announcement at some stage today after a two-day meeting.
Last month's cut of 0.25 per cent was the third cut in interest rates since December.
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