The
Bank of England is widely expected to hold the interest rate at the record low of 0.5 per cent today.
The announcement will be made at noon today (5 August), with many economists believing that the rate is likely to remain unchanged.
A number of factors within the economy are thought to be responsible for this, such as public sector cuts, ongoing business caution and a lack of consumer confidence.
David Kern, chief economist at the British Chambers of Commerce, said: "The government's tough deficit-reduction programme will inevitably hit the cash flow positions of many companies, and any early tightening in monetary policy would increase the pressures on businesses."
He explained that a low interest rate was a necessary measure for the recovery of British businesses, adding that any proposals of raising the figure should be "off the table" until the second quarter of 2011.
According to a survey of the UK's services sector, many businesses are already struggling under the coalition's financial regime, with some economists fearing that the country could be heading toward a double-dip recession.
