3 October 2008
The Bank of England base rate may fall to 3.5% next year, according to the Chief European and UK Economist at Global Insight. Howard Archer said he expects the monetary policy committee to cut rates next week from their current level of 5%. He also said he would "not rule out" another cut before the end of the year, followed by further reductions in 2009. "I think rates could well be down to 4.5% by the end of this year and then down to 3.25% next year," he predicted. In a poll conducted by the online news agency Adfero, seven of the twelve economists questioned said they thought rates would be cut this month, while five predicted no change. The monetary policy committee will make its monthly base rate decision on Thursday October 9th. A cut in rates could translate into lower repayment costs for consumers with secured loans.
© 2008 Adfero Ltd
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