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Interest rate poll predicts 'no cut'

Interest rates are set to remain at 5.25 per cent, a new poll from news agency Adfero suggests.

All economists contacted said that they were not expecting a cut when the Bank of England's Monetary Policy Committee (MPC) meets next month.

The apparently slowing UK economy - which had seemed to make rate cuts more likely - has been counterbalanced by recent inflation fears, economist for Lloyds TSB Jeavan Lolay said.

"Members of the MPC are concerned about the trajectory for inflation in the short term," he said.

"They'll probably wait for a period of time [to cut rates] to make sure that that isn't a risk."

RBS economist Ross Walker commented that "the next quarter-point cut" would come in May.

"We're expecting a cut in May and another one later on in the year," chief group economist at the Halifax Martin Ellis agreed.

Interest rate cuts generally make mortgage and personal loan repayments cheaper.

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