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Public wants further rate cut, survey shows

Public wants further rate cut, survey shows

Category: Loans

Updated: 16/12/2008
First Published: 12/12/2008

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 It is now over 6 months old so the content may be out of date.

Nearly half of people in the UK think interest rates should go down in order to improve the economy, the Bank of England has found.

Last week the Bank cut the official base rate to two per cent, which could lead to lower rates for secured and unsecured loans.

But 46 per cent of those surveyed stated that further reductions are needed, an increase on the 40 per cent who said this in August.

The call for lower interest rates may have been prompted by expectations for inflation, with the median figure seeing its biggest loss since the survey began nine years ago.

In the last quarter the rate was expected to be 4.4 per cent over the next year, but it is now predicted to be 2.8 per cent.

Commenting on the results, Liberal Democrat shadow chancellor Vince Cable said that the base rate will need to be reduced further, stating: "This survey confirms what we already expected, that inflation is turning into deflation for the first time in our lifetimes."

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