11
Jun
MPC to announce latest base rate decision
The Bank of England's monetary policy committee (MPC) will meet
today before announcing June's interest rate.
Decisions on the cost of borrowing often have an effect on
home-buying, but many economists have predicted that the base rate
will remain at 0.5 per cent this month and for the foreseeable
future.
Centre for Economic and Business Research (CEBR) economist Arek
Ohanissian said this week that the CEBR thinks interest rates will
be "on hold for quite a while".
"At this point we are estimating that they won't start pushing it
up until the first or second quarter of 2010," he explained.
Nearly two years ago the rate of interest was 5.75 per cent, but
the MPC has gradually brought the cost of borrowing down to its
current level over the last 18 months.
It announced the record low level of 0.5 per cent in March this
year.
