Home-owners hoping for another interest rate cut from the Bank of England this week are likely to be disappointed, economists said today.
The bank's monetary policy committee, faced with a worsening outlook, made a surprise pre-emptive strike last month and cut the cost of borrowing to 3.75 per cent.
But experts warned a repeat was unlikely on Thursday. Instead, the UK economy was likely to receive a boost on the same day from a decision by the European Central Bank to cut its interest rate.
That should at least pep up demand on continental Europe and lift prospects for exports among UK manufacturers.
One of the main reasons why the Bank of England will be reluctant to cut interest rates is the recent weakening of sterling, which could push up inflation by 0.5 per cent in two years' time.
There also appears to have been little change in economic conditions since the bank's rate-setting committee voted by seven to two in favour of a cut.
But the picture could still be influenced by economic data early this week, including CBI retail figures and a monthly manufacturing survey.
Interest rates are now at a 48-year-low after last month's reduction, which was the first time the cost of borrowing had been lowered for 14 months.
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