Half percentage point base rate cut\"likely\"
News Category: Industry News
Published: 03-Nov-2008
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An industry expert has predicted that the Bank of England will cut rates by 50 basis points this week.
The Bank's monetary policy committee (MPC) meets this Thursday for its monthly decision on UK interest rates amid growing financial pressures caused by the UK economy's slide into recession.
Ross Walker of the Royal Bank of Scotland said chances of an aggressive rate cut are "likely", predicting that a 50-point cut in the base rate could be followed by successive cuts by the same margin over the next few months.
Interest rate cuts might help boost liquidity in the money markets, which might help landlords with buy-to-let mortgages.
The MPC's decision comes after the US Federal Reserve has already slashed its rates to one per cent.
Last month, the Bank announced an emergency rate cut of 0.5 per cent a day earlier than expected in a coordinated move with othernation's central banks.
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