London (uk-direct-loans) February 16, 2007: It seems that the Bank of England would not make a further hike in the interest rates. It would remain at 5.25 percent for this month. Now the Bank would like to wait and see that whether the three hikes were able to control the inflation or not?

There is an expectation that the Bank would not make a hike because of the volatile stock market and the inflation which has felled back during January.

The investors are still not happy, because the interest rate hikes has significantly affected the market. The bank’s own inflation forecasts that another rate rise may happen at some stage in the future.

According to a Reuters poll of economists there is a 30 percent chance that the Bank of England may hike the base rates. On the other hand, the money market rates show even smaller possibility of the rate hike. But, many investors in the UK think that the interest rate may rise up to 5.5 percent by summer.

Though, the probability seems to be less that there would be a hike in the base rates. But, if there is again a rise in the interest rates, then the borrowers who have taken the personal loans on variable rates may have to face the heat.

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