The Bank of England (BoE) is widely expected to hold interest rates at a 15-year high of 5.25 percent at today’s base rate decsion.
The rate, set by the Monetary Policy Committee, will be published today at 12:00 GMT.
Another hold may bring some relief to homeowners who have seen mortgage rates rise but savers are unlikely to see a boost.
Rates have risen 14 times in a row since December 2021 as the Bank tries to bring inflation closer to its target of two percent.
Governor Andrew Bailey has said that it was “far too early” to be thinking about rate cuts.
He said: “We do have to get [inflation] down to two percent and that’s why I have pushed back of late against assumptions that we’re talking about cutting interest rates.”
Rate setters at the Bank of England held rates in September and November’s meetings after seeing an easing in the rate of inflation.
The upcoming meeting follows key economic data from the Office for National Statistics (ONS) this week, which also showed signs of cooling in the economy.
Policymakers will be keeping a close eye on the “core inflation” rate – a measure which strips out volatile factors such as food and energy.
The chances of rates actually starting to fall again look slim before next summer.
At one point, UK rates were expected to rise above six percent, but that peak is now expected to be lower, even if there is a rise at a later date.
Financial markets had previously priced in 0.75 percentage points of interest rate cuts in 2024.
On Wednesday, they were expecting a one percentage point drop, which would see interest rates drop to 4.25 per cent by the end of 2024.
However, experts are still predicting the base rate to remain steady today and in the early months of the New Year.
Martin Beck, chief economic advisor to the EY Item Club, said little has changed since the previous rate decision to bring about a different result.
He said: “December’s MPC meeting will almost certainly prove the third in succession to deliver no change in interest rates.
“There’s been nothing in the way of significant economic surprises over the last four weeks and inflation and pay growth have slowed (the former by more than the Bank of England expected).”
Investors were almost fully pricing in five quarter-point interest rate cuts by the Bank of England during 2024, a day after the U.S. Federal Reserve signalled it was moving towards cutting borrowing costs.
