Wednesday 7th February 2007
The Bank of England may choose to increase the base rate of interest again this month, according to Lloyds TSB.
Advice from the financial services provider suggests that a desire by the Bank to tackle inflation may lead to "a surprise for those that thought that rates had peaked".
Members of the Bank of Englands monetary policy committee (MPC) are due to meet tomorrow to discuss whether to change the interest rate.
It currently stands at 5.25 per cent following Januarys 0.25 per cent increase, the third such increase since August 2006.
Trevor Williams, chief economist at Lloyds TSB, said: "Although the last increase may only have been a month ago, all the economic signs are that another one could be on the cards."
"Over the past few months, the heat has really been turned up on inflation," he added.
Minutes of the MPC meeting in January show that the rate rise was a split decision, with five members voting in favour of the increase while four voted against.
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