20-02-2008
Monetary Policy Committee keen on interest rate cut
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The recent publication of the minutes of the Bank of England's monetary policy committee (MPC) illustrates the strength of conviction to reduce interest rates this month.
According to the minutes of the latest meeting by the MPC, a majority of the committee was in favour of reducing interest rates to 5.25 per cent.
Of the nine members of the MPC, eight people were in favour of the reduction, with one member proposing a deeper rate cut to five per cent.
"There was little evidence to suggest that a slowing housing market would lead to widespread financial distress and defaults in the [UK] unless there was also a significant rise in unemployment or mortgage rates, which had both been factors in the rise in possessions in the early 1990s," said the minutes.
The publication of the Bank of England's next report on inflation is expected on May 14th.