Bank of England set to rain on hopes of interest rate cut after economic bounce

Although the UK economy is experiencing overall growth, there is still reluctance among consumers to spend. Photograph: Andy Rain/EPA

Savers are always on the lookout for the best interest rates and the UK seems like a good bet at the moment. In recent months, the pound has climbed in value against the euro and the dollar as economists speculate that UK interest rates will remain at 5.25% for longer than previously expected.

While the odds of a cut in borrowing have shortened, with a narrow majority of City analysts expecting a reduction, few outside the Square Mile believe a change is imminent.