Expected increases in interest rates to be delayed?

The Council of Mortgage Lenders (CML) has said that any base rate rise could be pushed back to late summer or into 2012.

The measure was frozen last week against a backdrop of weaker than expected economic data, suggesting a weak economic recovery. The body said that although inflationary pressures persist, it thinks that the Bank of England's Monetary Policy Committee will be swayed by the poor state of household finances and its impact on consumer spending.

"August now looks the earliest possible date for a rate rise, but weaker short-term prospects for economic growth suggest that the committee may hold off from any tightening for the rest of this year," predicted the CML.