Analysts of the UK’s financial markets have revealed that the BOE is likely to wait for at least another 6 weeks, before reviewing a further reduction in national interest rates.
Many home loan borrowers within the country are likely to have been banking upon another reduction in gross interest by the end of Q1 2008, however, experts agree that factors affecting the rate of inflation will most probably postpone the chances of this happening.
Members of the MPC are due to meet at the latter part of this week to discuss interest movements, but preliminary comments from representatives of the countries major banks have already indicated that rates will remain unchanged.
One of the UK’s best-known economists commented that a further ¼ of a percent reduction in the rate of national interest would almost certainly take a back seat to the demands of inflation, meaning that fixed rate home loan payers would have at least another 6 weeks to ride out before the committee meet again. However, some experts feel that a reduction of ¼ of a percent would not be enough to help a large number of struggling homeowners.
