11
Aug
Bank of England backed to cut rate
An economic advisor has delivered the latest forecast of a series
of cuts in the base rate by the Bank of England next year.
Roger Bootle, who advises business analysts Deloitte, told the
Business Desk that the Bank of England's monetary policy committee
(MPC) is likely to make major cuts in the year ahead with the
economy heading for recession.
He stated: "Interest rates will, eventually, have to fall very far
to lift the UK economy out of its current malaise."
Mr Bootle said the base rate may drop to 3.5 per cent or even
lower.
This is the latest in a number of similar predictions suggesting
there will be radical action by the MPC once it feels the threat of
rising inflation is subsiding.
Another such forecast came last week from Scottish Widows
Investment Partnership, which said there will be four trimmings of
the rate in spring and summer next year to lower the rate to four
per cent.
