'No chance' MPC will raise base rate in June

Investors learning how to be a trader have been told it is almost certain that the Monetary Policy Committee (MPC) will keep the base rate at 0.5 per cent for another month at least, according to one financial expert.

Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, claimed the MPC will want to see firm evidence of an economic recovery in the UK before it makes changes.

He said: "We're still sticking with our call of November, but there is more chance of the first rise coming later than November than before."

Mr Goodwin stated there is "virtually no chance" of the MPC raising interest rates when the group meets on June 8th and 9th.

In his opinion, the risks are still on the downside, particularly since recent economic data has been weak.

The base rate was last altered in June 2009, when it was reduced by 0.5 percentage points to the historic low of 0.5 per cent.

Posted by Chris Weaver