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Economists predict interest rate cut

Economists predict interest rate cut

Category: Loans

Updated: 07/08/2017
First Published: 07/10/2008

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 It is now over 6 months old so the content may be out of date.

Those planning to take out secured loans may benefit from an interest rate cut this week, experts have suggested.

An Adfero poll of economists, financial institutions and business organisations has found that the majority expect the Bank of England to cut the base rate when the monetary policy committee meets this week.

Seven of the 12 surveyed said a cut is likely, while five predicted that the rate would be held.

A spokesperson for Nationwide stated: "We will probably see a move in interest rates this month and there are likely to be further reductions over the next year," while Martin Ellis, of Halifax, observed: "It's finely balanced, but [there is] a good chance of a rate cut."

Any change in the rate, which has been held at five per cent since April, could have a significant impact on consumers, as it can affect the rate set by banks for secured as well as unsecured loans.

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