UK interest rate rise unlikely until May 2016, CEBR forecasts

Signs of a global economic slowdown prompt analysts to put back predicted date

The Bank of England is likely to keep interest rates on hold until the middle of next year rather than raising them sooner, following a gloomier outlook for the global economy, according to the economic forecaster CEBR.

The Centre for Economics and Business Research now believes a rise in May or August 2016 is more likely than one in February, its previous prediction. Signs of a global economic slowdown have been growing in recent weeks, especially in the world's second-largest economy China and emerging markets. This is likely to stay the Bank's hand despite reasonable growth rates in the UK, with the CEBR warning that the UK's performance may not be sustainable if economies elsewhere continue to struggle.

Related: UK interest rates may have to be cut, warns Bank of England chief economist