Rates may drop again in April
The MPC is expected to drop the national rate of interest to 5% as an outcome of its forthcoming April meeting.
According to one of the UK’s most revered financial analysts, the current state of the UK’s economy will leave the BOE with little other alternative than to reduce interest rates by a further quarter point in the next few weeks.
Increasingly hostile conditions are playing havoc with the financial markets, which is in turn causing the British public to holster their spending output. A further reduction in the national rate of interest will help to reinstall consumer faith in the economy, which will hopefully reinvigorate gross spending levels.
In addition, a further interest rate drop will also account towards helping many thousands of struggling homeowners, whose home loan repayments are tied to base rate performance.
One expert commented that in his opinion, there was little chance of the MPC not readjusting the base rate in the favour of fuelling an economical boost, although it is also possible that rates will remain unchanged.
