Bank of England 'unlikely to offer help to savers'

Savers are unlikely to be boosted by an interest rate rise in June, one expert economist has claimed.

Michael Baxter, editor of Investment and Business News, said he fully expects the Bank of England to freeze its base rate at 0.5 per cent again this month - the level it has resided at since March 2009.

He added that the Monetary Policy Committee is also unlikely to restart its quantitative easing policy, which was halted in February after injecting £200 billion into the economy.

Mr Baxter said he could not imagine many members of the committee pushing for a rise this month.

"In the last meeting they had just a few doubts. This month's meeting will perhaps see a few more doubters," he suggested.

"But for now, the majority of movers within the Bank of England will stick with low interest rates for quite a long time yet - certainly until the end of this year."

According to the Office for National Statistics, gross domestic product increased by 0.3 per cent during the first quarter of 2010.

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2010-06-08 12:27:02 © Moneyextra.com