A rise in interest rates next month is unlikely, believes Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, which could spell good news for anyone with a personal loan.
He indicated that the Monetary Policy Committee is still uncertain about the strength of the UK's economy, which will make it reluctant to introduce an increase.
"There are genuine concerns about the weakness of activity and those concerns are likely to win out over any worries about inflation until we see some signs that momentum is beginning to build," he commented.
Mr Goodwin thinks that activity levels will start to pick up over the coming months, which he believes will have an impact on whether any further quantitative easing will take place.
The Worldwide Property Group confidence tracker survey recent found that in May, there was a 20 per cent fall in respondents expecting interest rates to increase. |
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