27-03-2008
Expert calls for further interest rate cuts
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Additional reductions in interest rates should be implemented by the Bank of England's monetary policy committee (MPC), it has been claimed.
Katie Tucker, a representative from John Charcol, believes that in spite of data showing current growth levels, in combination with the present rate of inflation, a further interest rate reduction may be forthcoming due to the high cost of borrowing for mortgage lenders.
While the MPC does not plan to confirm any future interest changes until April 10th, at present interest rates are set at 5.25 per cent.
"A further bank rate cut would not normally be expected in an environment of improved growth expectations combined with inflation climbing to one per cent over target," said Ms Tucker. "However, cash-strapped homeowners will be relieved to know that some relief to their purse-strings may still be due."
Despite an inflation target of two per cent, Bank of England data shows inflation to be currently at a rate of 2.5 per cent.