by business editor Trevor Sturgess

High inflation is likely to delay a base rate hike until August or September.

That's the forecast from Jeremy Wood, the new chief executive of Kent Reliance Banking Services, the hybrid bank and mutual that transformed from a building society after a £50 million cash injection by J C Flowers.

Speaking before a BBC survey published today found that most leading economists believe an imminent rate rise is no longer on the cards, Mr Wood expects the Bank of England's Monetary Policy Committee to delay a decision until the late summer.

Mr Wood had originally thought the MPC would raise the rate from its historic 0.5 per cent low next month (May) but the latest RPI and CPI figures had changed the economic landscape.

The numbers had come as a bit of a surprise, he said.

"It's tough at the moment and I would have thought that the next rise will be in late summer, possibly in August or September.

"There are mixed messages out there and clearly the consumer is voting with his or her feet."

Meanwhile, the Chatham-based financial business that now operates OneSavingsBank and Kent Reliance Provident Society, has resumed lending and some of its savings products are now listed in best buy tables.

Mr Wood said there was strong demand for mortgages, much of it for above 75 per cent loan to value because many borrowers find it hard to come up with substantial deposits.

But risk had to be properly managed, he added.

"That's why we generally more comfortable lending at 75 per cent but there's certainly demand in the market for higher loan-to-value levels."