MPC urged to cut rates
Wed 14th May, 15:16:43 BST
The Bank of England''s Monetary Policy Committee (MPC) should cut the base rate of interest to 3.5 per cent as soon as possible.
That is according to Assetz, which said that interest rates need to be brought down sharply.
It comes after the latest inflation figure was recorded at three per cent, fuelling speculation that the MPC will not cut rates.
Stuart Law, Assetz chief executive, said that the Bank should not use the increased inflation as an excuse for failing to cut rates.
"The Bank of England must not use the spike in inflation announced yesterday as an excuse to hold back interest rate cuts again next month [the] hike is largely due to rising food prices and energy costs and was not unexpected," he said.
"I strongly suggest the Bank of England now lowers base rates very quickly to 3.5 per cent, given that the increased profit margins for the banks mean that payable interest rates for the property owner, consumer and business will still be higher than before last summer," added Mr Law.
That is according to Assetz, which said that interest rates need to be brought down sharply.
It comes after the latest inflation figure was recorded at three per cent, fuelling speculation that the MPC will not cut rates.
Stuart Law, Assetz chief executive, said that the Bank should not use the increased inflation as an excuse for failing to cut rates.
"The Bank of England must not use the spike in inflation announced yesterday as an excuse to hold back interest rate cuts again next month [the] hike is largely due to rising food prices and energy costs and was not unexpected," he said.
"I strongly suggest the Bank of England now lowers base rates very quickly to 3.5 per cent, given that the increased profit margins for the banks mean that payable interest rates for the property owner, consumer and business will still be higher than before last summer," added Mr Law.
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