April rate cut is a growing possibility


Tue 18th Mar, 14:58:55 GMT

There is hope that UK mortgage borrowers will benefit from reduced interest rates in April.

It follows the publication of the consumer price inflation (CPI) figure for February, which hit a nine-month high.

Global Insight economist Howard Archer said that the Bank of England''s Monetary Policy Committee (MPC) will want to maintain interest rates to keep inflation under control but may have no choice but to cut them.

An April rate cut would be welcomed by most mortgage borrowers and Mr Archer said that there is likely to be more that follow.

"There is now a very real possibility that the Bank could be forced into acting in April if liquidity remains very tight and money market interest rates elevated," he commented.

"Further out, we expect interest rates to fall to 4.5 per cent by the end of the year and to four per cent in the first half of 2009," continued Mr Archer.

A recent Young Group poll of property investors found that 89 per cent expect the base rate to be below five per cent by the end of this year.ADNFCR-1143-ID-18514497-ADNFCR


News Home




 Print   Send to a Friend   Discuss in Forum   RSS Feed



Share this article:

  Digg it    Del.icio.us    Reddit    Newsvine    Nowpublic   






Search News Archive: