3
Feb
Poll predicts fall in interest rates
Homeowners could be set to benefit from reduced interest payments,
as experts have predicted a cut in the official base rate.
The Bank of England is meeting this week, with a decision due to be
announced on Thursday.
And an Adfero poll of 12 economists, financial institutions and
business organisations found that 11 expect a reduction, with one
predicting a hold.
Charles Davis, senior economist at the centre for economics and
business research, stated: "I'd say [a cut of] 50 basis points is
probably the most likely decision. They could even go with
something even bigger."
The survey revealed that the majority expect the reduction to echo
the 0.5 per cent change of last month, with the threat of deflation
a major factor.
But the Royal Institution of Chartered Surveyors' Simon Rubinsohn
suggested a hold is more likely, with the Bank's monetary policy
committee set to wait until March before making cuts.
