Experts Predict Hold on Interest Rates, But Warn of Potential Hike

The Bank of England's Monetary Policy Committee (MPC) will announce its decision on the Base Rate, which affects borrowing costs across the UK, on Thursday. The current rate is 3.75%, having been steady for seven months.

Most experts predict that the rate will remain at 3.75% tomorrow, but borrowers should be prepared for a potential increase of 0.25% in the coming months. David Hollingworth, associate director at L&C Mortgages, said that if more MPC members vote to raise the rate, it could signal a need for borrowers to prepare for a possible hike.

Harriet Guevara, chief savings officer at Nottingham Building Society, is more certain that the rate will not change tomorrow. However, she warns that even if the rate holds, inflation remains above the Bank's 2% target, and energy bills went up 13% in July. Markets are now pricing in one to two rate rises before the end of the year.