3 Apr

Rate cuts 'are on the way'

Rate cuts 'are on the way'

Further cuts to the base rate of interest are likely to take place in the months ahead, the Bank of Scotland has claimed this week.

Global economist at the organisation Ross Walker said that governor of the Bank of England Mervyn King has revealed in recent times that the rate will need to lowered because of the current economic situation.

Moreover, because Mr King has hinted that the balance of risks on the economy is "titling to the downside", Mr Walker noted, there are clear signals the cuts are on the cards.

He suggested that a cut should occur this month, followed by another one later in the year then a third next year, something that may be interest to those with mortgages.

"We expect a further quarter-point cut to follow in the summer (July or August), before the expected peak in Consumer Prices Index inflation this autumn," he commented.

Head of markets at the Bank of England Paul Tucker has recently said that the credit crunch is having a definite impact upon the financial sector in the UK.ADNFCR-1222-ID-18536243-ADNFCR

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