The Bank of England is likely to hold interest rates at their current level for January, it has been predicted.

In December, the Bank surprised some economists by cutting rates by 0.25 to 5.5 per cent as the credit crunch continued to bite borrowers and ongoing financial uncertainty made banks less willing to lend to each other.

However, seven out of eight experts polled said they did not think there would further adjustments this month.

Martin Ellis, chief economist at Halifax, explained: "We think there is another change coming soon but it is more likely to be in February than January."

Looking ahead to the rest of the year, he said the firm expected "there to be at least two reductions this year – it''s quite likely there will be more".

Howard Archer, UK chief economist at analysis firm Global Insight, said he did not expect a rate cut tomorrow but added: "I think its going to be a very tight vote."

Barclays Capital was the only firm to forecast a cut, with its UK economist Simon Hayes predicating cuts of 0.25 per cent in January, February and April.