30th May 2008
UK mortgage holders are unlikely to see a change in the interest rate next week when the Bank of England's monetary policy committee convenes for its monthly meeting.

This is according to a poll of eight economists and financial institutions polled by Adfero.

All of those surveyed predicted the interest rate will be held steady at five per cent.

Representatives of Lloyds TSB, HSBC, Global Insight, RBS, Capital Economics, HBOS, Nationwide and the Centre for Economics and Business Research (cebr) all believe there will be no changes to the interest rate.

Nationwide's Zoe Stevens said the organisation believes there is an 80 per cent probability that the interest rate will be held at five per cent, with a 20 per cent chance of a 0.25 per cent cut.

Global Insight chief European and UK economist Howard Archer said that with inflation predicted to rise to nearly four per cent this summer, the Bank of England "will tread extremely carefully on the interest rate path for the time being".

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News on the Subject of Mortgages in the United Kingdom Brought to you by the SimpliGroup – Making sure that you are fully informed about the UK Financial Market



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