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The interest rate will fall again over the coming year, financial experts have predicted.
The Bank of England’s monetary policy committee (MPC) cut rates last week by 0.25 per cent after five previous increases since August 2006. However, one poll has suggested the rate will fall further next year.
"There will be a cut probably in May and another one mid-year and I think rates will get down to five per cent during 2008 as the economy slows," said Trevor Williams, chief economist for Lloyds TSB.
A spokesperson for the Centre for Economics and Business Research (CEBR) predicted a similar shift downwards.
"By the end of the second quarter 2008, rates will be down to 5.25 per cent, down to five per cent in the third quarter of 2008, and to remain at five per cent at the end of the fourth quarter of 2008 and the first quarter of 2009," they said.
Possible rate rises will be headline news in the commercial property industry, which has continued to see busy activity this year.
Law firm Reed Smith Richards Butler is set to move into its new headquarters by taking 155,000 sq ft of office space at British Land’s, Broadgate Tower.
The firm hopes to be established in their new office space in London by the second quarter of 2009.