3 December 2007
Ongoing fears of a downturn in the housing market have led to calls for the Bank of England to cut interest rates.
According to a new report from the Council of Mortgage Lenders (CML), there should be at least a 0.5% reduction in the rate over the next year.
Making borrowing cheaper by reducing the base rate from its current 5.75% would also be beneficial for those consumers looking to take out a personal loan.
"The case for the Bank of England intervening aggressively to bolster liquidity has grown stronger as market conditions have deteriorated in recent weeks," the report stated - making direct reference to the credit crunch.
Interest rates have previously been increased on five separate occasions by the Bank of England over the past eighteen months.
However, fears of an economic downturn triggered by the ongoing credit crunch and fluctuating markets have led to analysts predicting cuts - and has already led the Bank's US equivalent, the Federal Reserve, to slash rates by 0.75% since the summer.