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Experts predict rate cut

Experts predict rate cut

Category: Economy

Updated: 02/03/2009
First Published: 02/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of England is likely to lower the base rate of interest further this week, experts have predicted.

A poll of economists, financial institutions and business organisations - conducted by Adfero - revealed that nine out of 11 expect a cut.

The majority suggested that 0.5 per cent reduction is the most likely outcome of the Bank's monetary policy committee meeting, the result of which will be announced on Thursday.

Such a move could lead to lower interest rates on secured loans, although two of the respondents stated that it is too difficult to predict.

"They may want to pause this time round and maybe they will come to the conclusion that there is merit in bringing it down further. It could go either way," said Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors.

Last month the Bank lowered the rate by half a percentage point - setting it at one per cent.

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