RICS: March interest rate decision

Commenting on the Bank of England interest rate decision, Simon Rubinsohn, RICS chief economist said: "The Bank of England predictably left base rates on hold today. The RICS believes that this was the appropriate decision following the lowering in rates in both December and February. Although the housing market is continuing to weaken, other parts of the economy are displaying rather greater resilience at this stage. Concerns that rising food and energy prices will become more entrenched in inflation expectations is meanwhile a serious risk which can't be discounted too lightly.

"That said, it would be highly unusual if the impact of a credit contraction on the scale currently under way was to be limited to just the property market. We suspect that it will gradually infect other parts of the economy and eventually lead the Bank to cut base rates further. Our judgement is that the next move will be in May."