Barry Nesbitt, chief economist at Abbey, has predicted that interest rates will still be at their current level by the end of the year.

Barry Nesbitt, chief economist at Abbey, has predicted that interest rates will still be at their current level by the end of the year.

However, Mr Nesbitt adds that the Bank of England's (BoE's) monetary policy committee (MPC) will make changes to the base rate during the course of the next 12 months.

"There is a likelihood of a decrease in the early part of the year and it will probably be taken back again at the end of the year to 4.5 per cent if growth picks up strongly."

The MPC announced earlier today that it was to keep rates on hold at 4.5 per cent – a decision that was widely expected by analysts

It is now the fifth consecutive month that the committee's members have decided to keep rates static.

However, commenting yesterday ahead of the announcement, Howard Archer, chief economist at consultancy Global Insight, said that "firmer house prices" would have prompted some of the MPC's members to favour a cut.