2 Feb

Base rate to be cut, say economists

Base rate to be cut, say economists

The Bank of England will cut interest rates again this week, according to economists polled by Reuters.

Of the 68 experts interviewed by the news provider, 61 forecast that the rate will be lowered by 0.5 per cent, two expected a reduction of one per cent, two predicted a 0.25 per cent shaving and the other three tipped there to be no change.

Another base rate cut could help bring down the cost of mortgages, which could benefit investors, first-time buyers and those looking to move house.

Last month saw the base rate trimmed to 1.5 per cent, the lowest level in the 315-year history of the Bank.

The decision to slash the base rate by 0.5 per cent was backed by eight of the nine monetary policy committee members, with the exception, David Blanchflower, advocating a one per cent reduction.

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