28
Nov
New poll tips rate cut
A Reuters poll of economists has found a consensus belief that the
Bank of England's monetary policy committee (MPC) will cut interest
rates again next week.
The news provider found that the MPC is expected to lower the base
rate by at least 0.5 per cent, with some expecting a one per cent
cut.
Such a reduction could see the base rate fall to 2.5 per cent or
two per cent, something that could help significantly lower the
cost of mortgages if, as was the case this month, most major
lenders pass on the reduction in full.
In an interview with the Guardian this week, MPC member David
Blanchflower said the way the body is now approaching monetary
policy is correct.
He stated: "We are now doing the things we should be doing. All
hands are to the pump and I get the sense that people have
absolutely got it."
Mr Blanchflower spent several months this year as the lone voice in
favour of a rate cut, arguing that an economic downturn was a
bigger threat than inflation.
