10 Apr

Rate decision 'not sufficient alone'

Rate decision 'not sufficient alone'

The decision by the Bank of England to lower the base rate of interest has been welcomed by the Council of Mortgage Lenders (CML).

Such a move ought to bring "greater stability" into the sector if it is matched with more liquidity provided by the bank, the CML claimed.

Moreover, successive rate cuts may offer more support to the housing market, said director general at the CML Michael Coogan.

He suggested that more co-ordination may prove that officials are dedicated to helping out with issue.

"We would like to see another base rate cut next month partnered with more liquidity auctions, of higher amounts, over longer terms and available to a wider range of institutions," he commented.

He said that in a "dysfunctional" point in history, a cut on its own will not suffice.

Today the Bank's monetary policy committee cut the base rate of interest to five per cent.ADNFCR-1222-ID-18546700-ADNFCR

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