10-04-2008
Interest rate cut today expected
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The Bank of England's monetary policy committee (MPC) today reduced interest rates to 5 percent from 5.25.
In the face of indications that the current credit crunch is taking its toll on the UK, the MPC, as expected, announced an interest rate reduction of 0.25 per cent.
However, according to David Anderson, the chief executive of Co-op Financial Services, there is no indication that the interest rate reduction will be passed on to consumers.
"We think that the renewed problems in the money markets and the recent dire news on house prices will carry greater weight than inflation concerns at today's meeting," said a representative from Capital Economics, in a report by the BBC.
In the report, Mr Anderson added: "I don't think we can be sure that lenders will follow any cut in base rates."
An announcement from the Bank of England in relation to inflation will take place on April 15th.