INTEREST rates look set to remain on hold this week but the cost of borrowing could fall before the end of the year.
The Bank of England's Monetary Policy Committee are widely expected to leave the base rate at five per cent when they announce the result of their two-day meeting on Thursday.
But the decision is likely to be a close call, and follows a split among MPC members on the direction of rates in August.
Business groups have urged the committee to reduce the cost of borrowing to avoid a major downturn, and MPC member David Blanchflower last week warned an extended and deep recession was possible unless interest rates were cut quickly.
Howard Archer, economist at Global Insight, said: "It now seems a question of when - rather than will - the Bank of England cut interest rates."
The Bank of England's Monetary Policy Committee are widely expected to leave the base rate at five per cent when they announce the result of their two-day meeting on Thursday.
But the decision is likely to be a close call, and follows a split among MPC members on the direction of rates in August.
Business groups have urged the committee to reduce the cost of borrowing to avoid a major downturn, and MPC member David Blanchflower last week warned an extended and deep recession was possible unless interest rates were cut quickly.
Howard Archer, economist at Global Insight, said: "It now seems a question of when - rather than will - the Bank of England cut interest rates."
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