The Bank of England may need to raise interest rates at least one more time and keep them on hold for most of next year, the International Monetary Fund said. This dampened hopes that the Bank of England could start cutting interest rates soon. Pierre-olivier Gurinchas, the IMF's chief economist, told reporters at the launch of the institution's World Economic Outlook report that the UK would face a "low growth performance" this year and next. The IMF expects the Bank of England to raise interest rates by another 25 basis points to 5.5 per cent before pausing. Mr Gurinchas said: "The overall view for the UK is that growth momentum is quite weak, the Labour market is cooling, but inflation is still quite persistent. This will require monetary policy to remain tight for some time, well into next year."
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