UK Interest Rates unchanged

There is no doubt that an interest rate hike is coming, with educated views a few months ago putting the time around the last quarter of 2011 but poor economic data, including rising inflation, in part caused by high oil and commodity prices, may force their hand a little.

How much will any rise be is the next question?

if the road to recovery was smooth, maybe a series of 1/4 % rises would be nodded through without a ripple but the recent disappointing growth figures may mean a 1/2% hike will be the opener, somewhat more of a surprise to the markets.

At the moment two of the nine members of the Bank of England Monetary Policy Committee are in favour of a move upwards, the other seven concerned that rising rates at a time when the strength of the recovery is weak, is not a good move.