A panel of leading experts has agreed there will be no further interest rate cut on June 5th.
The Bank of England’s monetary policy committee is expected to leave rates at five per cent.
Howard Archer, chief European and UK economist at Global Insight, explained that rising inflation and firms pushing up prices will lead the Bank to "tread extremely carefully on the interest rate for the time being".
Nationwide’s Zoe Stephens agreed rates will remain unchanged but hedged her bets, saying: "We believe there is an 80 per cent chance of no change, and a 20 per cent chance of a 0.25 per cent decrease in rates."
Inflation rose in April to three per cent – should it rise much higher the Bank will have to write to the chancellor offering an explanation.
The Bank will be more interested in curbing inflationary pressures than cutting rates, noted Charles Davis, economist at the Centre for Economics and Business Research, who also predicted ‘no change’.