3 Oct

Economists now expecting rate cut

Economists now expecting rate cut

The majority of economists and financial institutions now expect a cut in the base rate when the Bank of England's monetary policy committee (MPC) meet next week, according to a new survey.

A poll of 12 experts by Adfero found that seven believe a rate cut is probable next week.

Such a move could help lower the cost of mortgages.

A Nationwide spokesperson said: "We will probably see a move in interest rates this month and there are likely to be further reductions over the next year."

While five did predict a hold, one of these - Paul Dales at Capital Economics - forecast that the decision would be "very close", while senior economist at the Centre for Economics and Business Research Ben Read said such a decision will only delay a cut until November.

If the MPC does loosen its monetary policy it will be the first time since the last cut in April that any member other than David Blanchflower has supported a base rate reduction.

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