Interest rate week - will they go up again!
But what drives the bank's decision?
There is a one word answer to this: Inflation. The boffins on The Bank of England's Monetary Policy Committee (MPC) have been tasked to keep inflation somewhere between 1 and 3%.
To achieve this aim, they can raise and reduce the base rate.
If the MPC increases the base rate, money becomes effectively becomes more expensive and the supply of money in the economy falls. With less money in the economy, demand for goods and services falls and price rises should slow. In other words, inflation should come down.
The MPC looks at several factors when it makes its decision:
House prices. High house prices make people feel richer and thus more likely to spend. House price inflation fell in February; if that trend has continued in March, a rate rise is less likely.
Exports. In January UK exports reached their highest level since January 2004. Increased exports boost inflation, so the MPC will be studying the data for March closely.
Pay rises. Big pay rises often boost prices. The data for January was inconclusive on this, but if the MPC thinks pay is rising too fast, they could jack up the base rate in response.
Employment. If unemployment is low, pay is more likely to rise fast. Once again, January's data was inconclusive.
Money supply. Broad money grew at an annual rate of 13% in January. If that growth rate persists, the chances of further base rate rises look high.