3 Apr

Bank 'will cut rates' next week

Bank 'will cut rates' next week

The base rate of interest will be cut by 25 points when the Bank of England meets to make a decision next week, Global Insight has suggested.

Chief European and UK economist at the organisation Howard Archer claimed, however, that the decision from the Bank will be a "close" one, something that could have an impact on those with mortgages.

Such estimation was made, he said, because inflation is so high and the economy might suffer from this.

And he said that rates are likely to fall again over the course of the year, possibly to stand at four per cent by 2009.

"We believe that the increasing downside risks to UK growth stemming from tight credit conditions will prompt the Bank of England to trim interest rates by a further 25 basis points to 5.00 per cent at its April meeting," he commented.

The Bank's monetary policy committee will meet on 7th and 8th of April to discuss whether rates should be dropped.ADNFCR-1222-ID-18536251-ADNFCR

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