Experts predict 0.5% rate cut


The majority of experts expect the Bank of England to cut the base rate even further next week.

A poll of 12 top economists revealed that 11 are anticipating another cut.

Jonathan Loynes, chief European economist at Capital Economics, said: “We would expect a half point cut in the UK rates next week.”

Jeavon Lolay, senior economist at Lloyds TSB, corporate markets agreed. “We’re looking for a 50 basis point cut to one per cent,” he commented.

Mr Lolay explained that Lloyds thinks there is pressure on the rates to fall further, following continued bad news form manufacturing sectors, “so we think they will go to one per cent.”

Ross Walker, economist at RBS Global Banking & Markets, agreed with predictions of a 0.5 per cent cut, although he said rates would not fall much further.

“I don’t think we’ll ever get to zero, and it would be very surprising if we went below a quarter per cent,” Mr Walker added.

Cheaper commercial property loans could help push potential investors to buy offices in London, now better value following recent price falls.