Experts predict interest rate cut - Loans - News - Moneyfacts

News

Experts predict interest rate cut

Experts predict interest rate cut

Category: Loans

Updated: 08/01/2009
First Published: 07/01/2009

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 It is now over 6 months old so the content may be out of date.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 has been predicted to make a further reduction to the base rate of interest when the decision of its monthly meeting is announced tomorrow.

All 13 economists, financial institutions and business organisations surveyed by Adfero said that a cut is the most likely outcome, a measure that could lead to cheaper mortgages and secured loans.

The Bank's monetary policy committee is meeting today and will reveal its decision tomorrow, having reduced the rate from three per cent to two per cent last month.

Those questioned were divided over the extent of the likely reduction, with predictions ranging from 0.5 per cent to another full percentage point.

According to chief economist at Lloyds TSB Trevor Williams, the more modest move is "what is expected".

However, he himself predicted a larger cut, stating: "I think if they want to remain ahead of where markets are looking for and maybe get to where they want to be quicker ... they'll do [a] one percentage point cut."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close