The base rate has been predicted to fall significantly this year, which could lead to cheaper interest on secured loans.
Speaking ahead of tomorrow's Bank of England base rate decision, economist at the Centre for Economics and Business Research Arek Ohanissian said that the Bank will need to act in order to boost the UK economy. The rate currently stands at two per cent, having been lowered by one per cent last month and by 1.5 per cent in November.
And Mr Ohanissian predicted that the monetary policy committee will continue to make cuts, bringing the base rate of interest to 0.5 per cent by the end of the year.
"The economy isn't going to get any better between now and then so the Bank is going to need to do something," he explained.
Meanwhile, chief economist at the Royal Institution of Chartered Surveyors Simon Rubinsohn stated that he expects a 0.5 per cent reduction both this month and in February.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.