Base rate will be 5.25% inside six months - SWIP

Chief economist Richard Dingwall-Smith says evidence is mounting that the economy is slowing enough to keep inflation low. He says SWIP’s forecast is for growth to slow from a “robust” 3.1% this year to a “sub-trend” rate of around 2% next year. His comments follow a vote yesterday by the Monetary Policy Committee (MPC) to keep the base rate at 5.75%. Dingwall-Smith says: “The decision by the Monetary Policy Committee (MPC) to keep rates on hold at 5.75% was no great surprise given recent comments from individual members. "In our view, the UK economy is now at a turning point, with...