27 Feb

Bank tipped to cut again

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.

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