24-01-2008
Fool predicts 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.
Fool.co.uk has predicted a fall in interest rates when the Bank of England's monetary policy committee (MPC) convenes next month.
Following the decision of the US Federal Reserve to cut interest rates by 0.75 per cent, David Kuo, the head of personal finance at fool.co.uk, has confirmed his belief that the MPC may reduce interest rates by 0.25 per cent.
The next interest rate decision by the MPC will be announced on February 7th.
"I think that if you read between the lines [Bank of England governor] Mervyn King is hinting that the [MPC] will cut interest rates in February. But he also said that inflation is a problem, and that is something most people do recognise," said Mr Kuo.
Following the cut in the US, the country's headline rate is now 3.5 per cent.
In the UK, interest rates are currently set at 5.5 per cent.
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