28-01-2008
Expert calls for cut in interest rates
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
An expert from the Bank of England's monetary policy committee (MPC) has warned that the UK's interest rates should be cut significantly during the coming months.
David Blanchflower, a member of the MPC, has called warned that interest rates should be heavily reduced as a way of avoiding a pronounced downturn in the UK economy.
Mr Blanchflower made his comments during an interview with the Guardian. Currently, interest rates in the UK are set at 5.5 per cent. "Interest rates are restrictive at their current levels and that is why I have been voting for cuts," said Mr Blanchflower. "The evidence from the housing market and especially the commercial property market, is worrying. Consumer confidence is low in the UK."
An interest rate decision will next be made by the MPC on February 7th. Mr Blanchflower also cautioned against being preoccupied over the impact of inflation at present.
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