UK base rates expected to remain unchanged

Sunday, 3 April 2011 09:10

The Bank of England is expected to leave its base rate, to which lenders’ rates are tied, at its record low of 0.5pc on Thursday.

Inflation is running at 4.4pc, well above its 2pc target, but there are fears about the potential impact of a rate rise on the economy.

The purchasing managers’ index (PMI) for the UK’s massive services sector should underline the shakiness of the recovery, with analysts predicting it will stay at a 52.6 reading – just into the over-50 territory signalling growth.