9 Apr

New call for rate cut

New call for rate cut

Following on from other calls from the National Association of Estate Agents (NAEA) and Global Insight, the Confederation of British Industry has now said that the Bank of England should cut interest rates this week.

Director general at the organisation Richard Lambert suggested that consumers will undoubtedly be helped by such a move, despite the prospect of growing inflation.

And demand is being hit by the fact that both mortgage lending and interbank lending rates are up in the wake of the credit crunch, he claimed.

He commented: "It seems clear that another reduction in rates is in the pipeline. The Bank should make a quarter-point cut now, rather than later, to help hard-pressed businesses and consumers."

Yesterday Peter Bolton King from the NAEA stated that more "confidence" will return to the housing market among buyers if rates are trimmed.

The base rate of interest was last cut by the Bank in February, with the previous cut occurring in December.ADNFCR-1222-ID-18545109-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.