interest rates held

[hedge]

So the bank of england hold rate again @5.75%. how do you see rates go over the next year and why?

[EverClean]

I think this is so difficult to predict at the moment because the financial markets are so volatile and there are mixed signals regarding factors that would influence the Bank of England's decision.

House prices are slowing, the "credit crunch" is affecting borrowing for individuals and institutions alike. This would seem to indicate the need for a rate cut.

Inflation hasn't slowed and our economic growth is one of the highest in the World. These factors would seem to indicate the need for a rise in rates.

These factors against each other would in themselves indicate the need to leave rates as they are. We also haven't seen the full effects of the 5 rate rises we have already seen this year.

I can see adjustments up and down for the next year or so where the Bank is trying to level out the factors that influence it's decision.

Next one will be a rate cut - either December or January.