There is zero chance of an interest rate rise. But could UK interest rates be cut to zero?
Any rise in UK interest rates from their current record low of 0.5% would appear all but impossible at this stage.
The earliest possibility of a rate rise is November 2016, according to the latest overview of market forecasts compiled by ThisIsMoney.co.uk.
However, a rate cut is possible as an emergency measure to lift the UK out of double-dip recession. And it could come as soon as the results of this month's meeting of the Bank of England Monetary Policy Committee (MPC) are announced, at midday tomorrow (Thursday 5 July 2012).
Cut rates as an emergency measure to boost growth, says IMF
Back in May 2012, the IMF urged the Coalition Government to consider a further rate cut as an emergency measure to promote recovery.
The MPC did just that - considered such a move, that is.
The latest MPC minutes indicate that "the merits of a reduction in Bank Rate" were discussed at the June 2012 meeting.
Mervyn King this week raised the possibility that interest rates could be cut to 0% if the economic situation continues to worsen, the Evening Standard reports.
- Read more on this topic - and on prospects for the UK economy in the second half of 2012 - in XpertHR's July 2012 economic commentary article. The article also looks at the possibility of the MPC extending its programme of quantitative easing to attempt to boost growth.
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