The European Central Bank and Bank of England will each be holding their monthly meetings to set the rate of interest again today. The ECB is expected to up rates to 2.75%, – this will be the third hike in recent months, the rate being 2% last Autumn. It is also thought the Bank will suggest today that further rises will follow.
Meanwhile, in the UK, there’s uncertainty – but the general feeling is that rates will stay on hold. With recent fears about inflation growing there has been a change in the consensus of late. Until recently it was thought that the next change in the rate of interest would see the level fall, but now increasingly more economists expect a rise in the rate sooner or later.
© Investment & Business News 2013