Loans and savings accounts will remain unaffected as interest rates are not likely to change, predicts an expert.
Alan Clarke, UK economist at BNP Paribas, said that it was doubtful that the monetary policy committee (MPC) would announce any increases or reductions in interest rates at its next meeting.
He added that interest rates would probably be left untouched by the Bank of England for the rest of this financial year as well as the next one.
The election results would also play a significant role in the MPC's decision to hold back from making any rate changes.
Mr Clarke explained: "Lower government spending and higher taxes can bear down and burden inflation and may open the door to more quantitative easing."
Consumer Prices Index annual inflation had increased to 3.4 per cent in March, compared to 3.0 per cent in March, according to data published by the Office of National Statistics.
The MPC had previously decided to carry on maintaining the stock of asset purchases at £200 billion and voted to leave the base rate at 0.5 per cent.
Growth rate of gross domestic product has decreased by 0.2 percentage points in the latest quarterly figures compared to 0.4 per cent in the last three months of 2009.
As Britain woke up today to a hung parliament, financial experts have called for a concerted effort from all political parties to pull Britain out of the global economic bust. Pooling together the best of their brains could also turn into an advantage for the collaborative government.
Pierre Williams, head of research at MoneyExpert.com, also stressed the importance of politicians rising above political squabbling to take on the financial crisis.
He said: "We cannot clearly go on like this and the next government has to focus on tackling the deficit as soon as possible." |
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