Interest rates likely to stay put
Interest rates are unlikely to rise this month, but this hold will not last long, according to KPMG.
Andrew Smith, chief economist at the Big Four firm, said that with the Bank of England’s monetary policy committee having raised rates for the last two months, it is likely to stay its hand in July, but the upward trend will almost certainly resume with the next forecasting round and inflation report due in August.
‘A rate rise this month is unlikely,’ said Smith. ‘The MPC has already upped the tempo of monetary tightening, from a quarter-point to a half-point in the last two months, and a third consecutive rise might be regarded as over-egging the pudding, particularly since the markets expect a pause.’