Interest Rates Likely to Remain on Hold Despite Rising Inflation

Posted: 30th June 2011

A recent survey of business owners and managers conducted by the Institute of Chartered Accountants in England and Wales indicates that inflationary pressures are building in the economy.

However, with confidence remaining fragile (more than 11 points lower than the same quarter last year), growth is expected to be sluggish, leading Douglas McWilliams, Chief Executive of CEBR, to conclude that ‘the likelihood of a Bank of England rate rise in the short term has diminished…we would not be surprised to see rates remain on hold until 2012’.