27
Feb
Bank tipped to cut again
The Bank of England's monetary policy committee (MPC) will cut the
base rate again next week, a new poll has predicted.
An Adfero survey of 11 economists and spokespeople for financial
institutions has found that nine anticipate a further reduction in
the base rate when the MPC votes on the matter on March 5th.
Two were undecided in their view, with chief economist at the Royal
Institution of Chartered Surveyors Simon Rubinsohn commenting: "I
think they might hold it."
Those who anticipated a cut all suggested that 0.5 per cent was the
most likely amount by which the rate would be reduced.
Such a move could help lower the cost of mortgages, which may help
first-time buyers looking to get on the housing ladder.
This month saw eight of the nine MPC members voting for a 0.5 per
cent cut to take the base rate to its present one per cent figure,
with David Blanchflower arguing for a one per cent reduction.
