Bank of England could hold base rate until 2026

On Thursday the Bank of England’s Monetary Policy Committee (MPC) announce their decision over interest rates.

There is concerns over the economy and lack of growth that could see the base rate being held at 4% until next year.

The MPC could stop cutting interest rates in November and December economists believe, the base rate could therefore be held until February, in a blow for lenders and borrowers.

Thomas Pugh, chief economist for auditing firm RSM UK, said, “It’s all but guaranteed that the Bank of England will hold interest rates at 4% at its meeting on Thursday.

“The committee will stick to its gradual and cautious guidance, as it continues to try to balance rising inflation with a weakening labour market.”

Rob Wood and Elliott Jordan-Doak, economists for Pantheon Macroeconomics said, “The late Budget will likely also encourage the MPC to wait until December at least before considering another cut.

“We expect little change to the MPC’s guidance from August, given the hawkish dataflow and MPC members’ comments suggest little reason or desire to change their position from early August.”