Expert predicts further interest rate cuts
News Category: Industry News
Published: 02-May-2008
This article was brought to you by Rentman the premium property management system
The impact of the credit crunch, which is continuing to be felt throughout the UK, may lead the Bank of England to reduce the base rate this month.
That is the opinion of Howard Archer, chief European and UK economist at Global Insight, who anticipated that the Bank's Monetary Policy Committee (MPC) could announce further interest rate cuts next Thursday (May 8th).
He said that it was "certainly possible" that the Bank could make a quarter point cut in its May decision, reducing the base rate to 4.75 per cent.
Mr Archer commented: "Recent weak data and survey evidence relating to consumer confidence, retail sales, the housing market and manufacturing activity heightens concern that the UK economic downturn is deepening and adds to the pressure on the Bank of England to cut interest rates further sooner rather than later."
However he predicted that, due to the "current elevated inflation risks", it is more likely that the MPC will wait until June to make further interest rate cuts.
Buy letting agent software that works
