Belfast Telegraph

Economists banking on signals for an interest rate rise

By John-Paul Ford Rojas

The Bank of England will deliver its keenly-awaited outlook on prospects for the economy today amid mounting speculation that it could raise interest rates before the end of this year.

Its quarterly Inflation Report will for the first time be published alongside the Bank's decision on rates for the month, as well as minutes disclosing how members of the Monetary Policy Committee (MPC) voted.

The MPC is expected to leave rates for now at 0.5% - where they have sat for over six years.

But a number of economists expect a split in the nine-member committee for the first time this year, with a number of dissenters voting for an increase to 0.75%.

The Bank's views in its quarterly report on the path of inflation will also be seen as critical. If policy makers think inflationary pressures are building, amid accelerating wage growth, it will further fuel speculation that a rates rise is nearing.

A hike would spell higher repayments for mortgage borrowers and hope for savers who have seen the value of their nest eggs eroded.

P35: Services sector growth closes in July

Belfast Telegraph