BoE expected to keep interest rates at 5%

The Bank of England is expected to frustrate households this week by leaving interest rates unchanged at 5% for another month.

Inflationary pressure caused by the rising cost of food and fuel means the Bank’s Monetary Policy Committee (MPC) will have no room to cut rates. That is despite mounting signs of economic weakness, as highlighted in recent days by consumer confidence data and a 2.5% monthly drop in Nationwide house prices.