UK rate rise seems inevitable

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UK rate rise seems inevitable

LONDON, UK - An interest rate rise in either April or May is almost inevitable, according to a prominent think tank.

The Centre for Economics and Business Research (Cebr) believes the Bank of England will raise the base rate at some point in the next three months.

This comes as research by BDO Stoy Hayward suggests that inflationary pressures will prompt the monetary policy committee into action.

Interest rates currently stand at four per cent, following two quarter per cent increases since November last year.

BDO predicts that the bank will leave the base rate unchanged at its meeting this week to allow more time to assess the impact of its February rise.

"Emerging inflationary pressures, both worldwide and in the UK, mean that a rate rise in the next three months is virtually a done deal but the bank may wait for the main inflationary report before moving," said Douglas McWilliams chief executive of the Cebr.

The monetary policy committee convenes this week for its monthly meeting.

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