Economists: No rate rise until November

Economists are also concerned the country's economy is too weak for policy tightening, as severe government spending cuts start to bite, Bloomberg reported. Dutch bank ABN Amro has deferred its forecast, expecting the first rate hike to occur in 2012, despite inflation soaring to 4.5% last month, more than twice the Bank of England's target. Joost Beaumont, an economist at the bank, said: "The MPC will now wait until next year, when most of the fiscal consolidation measures have been implemented and the economy regains momentum." Meanwhile Barclays and J.P Morgan predict the BoE wi...