28 Nov

New poll tips rate cut

New poll tips rate cut

A Reuters poll of economists has found a consensus belief that the Bank of England's monetary policy committee (MPC) will cut interest rates again next week.

The news provider found that the MPC is expected to lower the base rate by at least 0.5 per cent, with some expecting a one per cent cut.

Such a reduction could see the base rate fall to 2.5 per cent or two per cent, something that could help significantly lower the cost of mortgages if, as was the case this month, most major lenders pass on the reduction in full.

In an interview with the Guardian this week, MPC member David Blanchflower said the way the body is now approaching monetary policy is correct.

He stated: "We are now doing the things we should be doing. All hands are to the pump and I get the sense that people have absolutely got it."

Mr Blanchflower spent several months this year as the lone voice in favour of a rate cut, arguing that an economic downturn was a bigger threat than inflation.

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