Bank ''considering rate cut''
Fri 16th Nov, 13:26:22 GMT
The Bank of England has sparked speculation that it will cut interest rates in the coming months as pressure mounts on the UK economy.
Currently, the base rate stands at 5.75 per cent after three rises in January, May and July, but new reports indicate that the Bank is considering cutting rates at least twice next year in order to ease the strain.
However, some analysts are predicting the Monetary Policy Committee (MPC) may decide to make a cut earlier.
Alan Clarke, an economist at investment bank BNP Paribas, told the Daily Telegraph: "We now believe the MPC will deliver the first interest rate cut at the December meeting."
Drew Wotherspoon of mortgage advice firm John Charcol, said that while it is hard to say if a pre-Christmas cut is on the cards: "What does appear to be clear is the only way for interest rates now is down, which is always a welcome message in the majority of UK households."
He urged homeowners to seek mortgage advice if they are looking for a new deal, explaining that "getting advice tailored specifically to you has never been more important".
Currently, the base rate stands at 5.75 per cent after three rises in January, May and July, but new reports indicate that the Bank is considering cutting rates at least twice next year in order to ease the strain.
However, some analysts are predicting the Monetary Policy Committee (MPC) may decide to make a cut earlier.
Alan Clarke, an economist at investment bank BNP Paribas, told the Daily Telegraph: "We now believe the MPC will deliver the first interest rate cut at the December meeting."
Drew Wotherspoon of mortgage advice firm John Charcol, said that while it is hard to say if a pre-Christmas cut is on the cards: "What does appear to be clear is the only way for interest rates now is down, which is always a welcome message in the majority of UK households."
He urged homeowners to seek mortgage advice if they are looking for a new deal, explaining that "getting advice tailored specifically to you has never been more important".
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