Thursday 5th April 2007
The Bank of Englands monetary policy committee (MPC) has voted to retain the current base rate of interest of 5.25 per cent.
However, economists advise that a rise may be expected when the MPC meets again on May 10th.
Earlier this week, Howard Archer, chief UK and European economist at Global Insight, predicted an increase "by May at the latest".
He argued that recent monetary policy decisions by the Bank of England hint at a desire to contain medium-term inflation risks.
However, he advised that 5.5 per cent "will mark the peak in interest rates as growth loses a little momentum over the coming months".
According to Mr Archer, indications are that the housing market may have reached its zenith, although he recognised that the sector as a whole remains "pretty strong".
The economist added that the two newest members of the MPC could revert to voting for a rate hike after maintaining rates last month.
In contrast, he suggested that those who have sat on the committee for longer may be more likely to "hold fire for a little longer" to assess the impact of the previous three increases.
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