7 Aug

NAEA argues for rate cut

NAEA argues for rate cut

The National Association of Estate Agents (NAEA) has said the Bank of England's monetary policy committee (MPC) should lower the base rate from five per cent in its monthly meeting today.

Economists expect the MPC to announce that the rate has remained on hold at noon, but NAEA chief executive Peter Bolton King urged the body to lower the rate and boost the mortgage market.

He said: "We believe that a reduction in interest rates this week will provide a pivotal way for the government to help revitalise the current market place."

While still tipping a hold as the most likely decision, chief UK economist at Global Insight Howard Archer said a? change was still possible, commenting: "It is not inconceivable that interest rates could be either raised or, less likely, cut."

The last cut to take place was in April, when the base rate was trimmed from 5.25 per cent to five per cent.

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