The British Chambers of Commerce changed its previous expectations that the BoE will raise interest rate by 25 basis points in August to keeping the borrowing cost unchanged till at least November where the BCC predicts the rate to be increased to 0.75% in November or December while it will not be increased to 1% or more before 2011 as recovery is still fragile.

The BCC sees the economy is still weak and the thereby needs support by keeping interest rate low at 0.5% and holding the APF at 200 billion pounds. According to a report released by the BCC, local manufacturing sales slipped to 1 in the first quarter of 2010 from 3 in the last quarter of 2009 whereas overseas sales lingered at 20.

Tomorrow, policy makers at the BoE will keep both interest rate and APF quantity unchanged in April, according to median estimates.