3
Apr
Rate cuts 'are on the way'
Further cuts to the base rate of interest are likely to take place
in the months ahead, the Bank of Scotland has claimed this
week.
Global economist at the organisation Ross Walker said that governor
of the Bank of England Mervyn King has revealed in recent times
that the rate will need to lowered because of the current economic
situation.
Moreover, because Mr King has hinted that the balance of risks on
the economy is "titling to the downside", Mr Walker noted, there
are clear signals the cuts are on the cards.
He suggested that a cut should occur this month, followed by
another one later in the year then a third next year, something
that may be interest to those with mortgages.
"We expect a further quarter-point cut to follow in the summer
(July or August), before the expected peak in Consumer Prices Index
inflation this autumn," he commented.
Head of markets at the Bank of England Paul Tucker has recently
said that the credit crunch is having a definite impact upon the
financial sector in the UK.