BoE fails to deliver 'much-needed' base rate cut
Published: 08-May-2008
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The decision to maintain the base rate at five per cent, announced by the Bank of England's Monetary Policy Committee today (Thursday, May 8th), represents a missed opportunity.
That is the opinion of Robin Amlot, senior editor of Moneyextra.com, who asserted that further interest rate cuts were "much-needed" to tackle the current problems in the UK economy.
He observed that conditions are becoming increasingly tough in the mortgage market, with potential buyers being impeded by a rise in deposits.
Mr Amlot added: "Recent economic figures confirm the UK economy is slowing down. All housing market commentators now expect house prices to fall - they just disagree about how far.
"The Bank of England is worried about inflation but not even the Monetary Policy Committee can micromanage what's expected to happen to the inflation rate over the next few months by delaying a much-needed base rate cut now."
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