Interest rates set to stay on hold

Interest rates set to stay on hold

Predicting the path of interest rates - unless you are the Bank of England Governor - is a tough exercise at the best of times.

However, it seems fair to say those economists arguing a base rate hike is imminent are now looking out of touch. Multi-year high growth rates and a house price boom have fuelled increasingly optimistic comments about the economy, and prompted predictions interest rates may rise as soon as Q4 of this year. But last week’s dovish comments from Mark Carney suggest any rise could actually come much later. The Governor, unveiling the latest inflation report, said he will not be using interest rates to control the housing market and any bubble that may be forming there. Importantly, ...