August rate rise on the cards

A number of economists predict the Monetary Policy Committee will raise interest rates in August this year, to curb rising inflation.

In a poll conducted by the BBC, 14 out of 22 economists said they expect the MPC to boost interest rates from historic lows of 0.5% in August, when an inflation report is due out.

Four of the economists predicted there would be a rate hike next month, while June, July, November and February also received votes.

Increasing interest rates will help to combat inflation, which is also forecast to rise over the coming months despite CPI falling 0.4% in March to 4%.

Of the 22 economists, 12 predicted a 1% hike, six predicted 1.25%, one said 1.3% and two forecast a 0.75% rise. Only one economist - Stuart Green at HSBC - believes rates will still be at 0.5%.

The forecasts come before the country's GDP results for the first quarter, which are revealed on Wednesday.

The BBC said many most of the economists who predicted a rate hike in May changed their mind after the last set of inflation results, suggesting views could change again this week.

At the MPC's last meeting earlier this month, three members of the nine voted in favour of increasing interest rates.