Experts predict interest rate freeze

Experts have predicted that the Bank of England will not slash interest rates again when the Monetary Policy Committee (MPC) makes its decision next week.

In a poll conducted by Adfero, all eight experts questioned believed that the MPC would keep interest rates at 5.25 per cent.

Ross Walker, economist for Royal Bank of Scotland, predicted: "5.25 per cent, no change in March. The main macroeconomic conclusion emerging from the February Inflation Report is that the UK''s output-inflation trade-off has worsened."

He added that the MPC forecasts imply that slower GDP growth "necessitates aggressive policy easing to prevent a future undershoot in CPI".

On March 6th the MPC will announce its decision after its monthly meeting, which lasts for two days.

Last month the committee voted eight to one in favour of a cut to interest rates to 5.25 per cent and the one member of the committee who voted against the cut wanted a larger cut rather than 0.25 per cent.

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