UK Property Market Forecast and Old Interest Rate Forecasts and Predictions in the UK at 7 Mar 2008

UK Interest Rates Forecasts and Predictions for Home and Property in the UK at 7 Mar 2008

UK Interest Rate: 5.25%

UK Interest Rates Forecast: No cut expected in March

Rate Cut Not Expected In March

A poll by Reuters of 65 economists found that 64/65 of those surveyed expect rates to be kept on hold when the Bank of England Monetary Policy Committee meet on the 6th March. 42 of the 65 polled did not expect interest rates to change again until May, at which point they expected a 0.25% cut to 5.00%.

33 of the 65 economists expect interest rates to fall to 4.5% by the final quarter of 2008 - but many believe that rates might rise again to 4.75% in the first quarter of 2009.

Bank's Lomax Suggests Cuts Possible If Needed - Besley Hints Not

The Deputy Governor of the Bank of England, Rachel Lomax, has suggested that further cuts to interest rates could be possible in the near future if the risk to economic growth became serious enough to outweigh shorter-term inflation risks.

Lomax, who is responsible for monetary policy at the Bank, emphasised that although the MPC's job is to keep inflation at its target level of 2%, "we have discretion to decide how fast to return inflation to target if it is thrown off course by a sharp shock, such as the current surge in world energy prices. So we are not required to raise interest rates sharply to counteract the rise in inflation which we expect over the next few months. We can decide what is appropriate in the light of all the circumstances."

Lomax made the comments in a speech at the Institute of Economic Affairs' 25th anniversary conference.

In the same week, Tim Besley, another member of the MPC, said in an interview with thisismoney.co.uk that "we [the MPC] are really serious about the inflation target".

Besley stressed that a broader view of the economy is necessary to take decisions. As an example, he cited the recent headline-grabbing short-term bad news from the financial sector. This, he said, should be seen in the context of how well this sector has done over the last decade.

Latest Interest Rates Forecast in the UK

Interest Rates Forecast to 10/10/06

Interest Rates Forecast to 20/10/06

Interest Rates Forecast to 27/10/06

Interest Rates Forecast to 7/11/06

Interest Rates Forecast to 22/11/06

Interest Rates Forecast to 27/11/06

Interest Rates Forecast to 3/12/06

Interest Rates Forecast to 10/12/06

Interest Rates Forecast to 17/12/06

Interest Rates Forecast to 22/12/06

Interest Rates Forecast to 29/12/06