Bank will announce further interest rate cuts
News Category: Industry News
Published: 09-Apr-2008
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The Bank of England will make further cuts to interest rates tomorrow (Thursday, April 10th), it has been predicted.
According to Barclays Stockbrokers, the Bank's Monetary Policy Committee (MPC) will announce a quarter point cut in its April decision, reducing the base rate to five per cent.
It was also predicted that interest rates would be reduced by a further 0.5 per cent by August.
Henk Potts, Equity Strategist at Barclays Stockbrokers, commented: "Pressure has been building and building on the Bank of England to reduce interest rates as the economic picture deteriorates and property prices fall. Recent evidence also suggests that the credit crunch is starting to contaminate the wider economy.
"While inflation is likely to remain high for most of 2008, it should begin to moderate into 2009 as slower growth reduces capacity pressures, while commodity price inflation wanes, thus giving the Bank the room for manoeuvre that it requires."
The base rate currently stands at 5.25 per cent.
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