Leading financiers and business experts have predicted interest rates will freeze at five per cent.
Paul Dales, UK economist at Capital Economics, Ross Walker from Royal Bank of Scotland, Stuart Green, global economist at HSBC and Lloyds TSB’s representative all said rates will remain unchanged.
Nationwide’s spokesperson agreed, although remained less committed: “We’re going with a 70 per cent chance of no change, a ten per cent chance of a rise and a 20 per cent chance of a fall.”
Howard Archer, UK chief economist at Global Insight, observed the Bank of England is facing “a difficult balancing act in terms of the economy” and “elevated price pressures”.
Despite this, he too was of the opinion rates will remain untouched: “I think the most likely decision will be to keep interest rates unchanged this Thursday.”
Commercial property investors looking for cheaper finance will be disappointed – with less cash available many are reluctant to buy, especially when prices are still falling.