9
Apr
New call for rate cut
Following on from other calls from the National Association of
Estate Agents (NAEA) and Global Insight, the Confederation of
British Industry has now said that the Bank of England should cut
interest rates this week.
Director general at the organisation Richard Lambert suggested that
consumers will undoubtedly be helped by such a move, despite the
prospect of growing inflation.
And demand is being hit by the fact that both mortgage lending and
interbank lending rates are up in the wake of the credit crunch, he
claimed.
He commented: "It seems clear that another reduction in rates is in
the pipeline. The Bank should make a quarter-point cut now, rather
than later, to help hard-pressed businesses and consumers."
Yesterday Peter Bolton King from the NAEA stated that more
"confidence" will return to the housing market among buyers if
rates are trimmed.
The base rate of interest was last cut by the Bank in February,
with the previous cut occurring in December.