3 Feb

Poll predicts fall in interest rates

Poll predicts fall in interest rates

Homeowners could be set to benefit from reduced interest payments, as experts have predicted a cut in the official base rate.

The Bank of England is meeting this week, with a decision due to be announced on Thursday.

And an Adfero poll of 12 economists, financial institutions and business organisations found that 11 expect a reduction, with one predicting a hold.

Charles Davis, senior economist at the centre for economics and business research, stated: "I'd say [a cut of] 50 basis points is probably the most likely decision. They could even go with something even bigger."

The survey revealed that the majority expect the reduction to echo the 0.5 per cent change of last month, with the threat of deflation a major factor.

But the Royal Institution of Chartered Surveyors' Simon Rubinsohn suggested a hold is more likely, with the Bank's monetary policy committee set to wait until March before making cuts.

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