2 November 2007
A 0.25% cut in interest rates by the Bank of England for early 2008 is predicted by a major new poll, released today.
However, a large majority of financial experts quizzed by news agency Reuters also said that rates would stay as they were when the bank's Monetary Policy Committee (MPC) meets this month.
Lowering the base rate - following five separate rises since August 2006 - would ease financial pressure on personal loan and mortgage borrowers.
When asked about next Thursday's rate announcement by the news agency, 55 of 60 economists said that they would remain as they are.
However, 47 of 59 predicted a fall of "at least 0.25%" by April next year.
Rate cuts would be widely seen as an attempt to stimulate the economy following the ongoing credit crunch caused by recent turmoil on global financial markets.
Banks are finding it more expensive to borrow from each other - and it is speculated that this might soon be reflected on the high street, with banks less willing to lend to consumers.
As a direct response to the market crisis, the US Federal Reserve has slashed its rate by 0.75% in a bid to stimulate economic growth - with the latest cut coming just this week.
Nevertheless, one expert who spoke to Reuters predicted that the Bank of England would not be following suit in the near future.
"We would expect them to continue to bide their time and allow more data to come in on the extent of any economic slowdown before changing rates," said John Hawksworth, Head of Macroeconomics at PricewaterhouseCoopers.
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