Rate cut looks likely this month


Fri 4th Apr, 15:53:30 BST

A new poll suggests that the Bank of England''s Monetary Policy Committee (MPC) will cut the base rate of interest in April.

A total of 75 per cent of major financial institutions questioned on the subject said that they anticipate seeing a 0.25 percentage point reduction.

That would bring the base rate of interest down to five per cent and Nationwide suggested that it could fall further.

"We anticipate there will be a 60 per cent chance that rates will be cut by 0.25 per cent, a ten per cent chance that rates will be cut by 0.5 per cent, and a 30 per cent chance that they will stay the same," a statement from the bank said.

"In the future we are anticipating that there will be two further rate cuts for the rest of 2008 and we''re expecting interest rates to come in at around 4.75 per cent by the end of the year," it continued.

The Bank of England''s Monetary Policy Committee is due to announce its decision on April 10th.ADNFCR-1143-ID-18538035-ADNFCR


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