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Economist forecasts base rate cut to 4 percentPublished on: 07/02/2008 The Bank of England will cut the base rate down to four per cent by the middle of 2009, an economist has predicted. Howard Archer, chief economist at Global Insight, said: "We currently forecast interest rates to fall to 4.5 per cent by the end of 2008 and to four per cent in the first half of 2009," based on the UK not going into recession but seeing "below trend" growth, Money Magic reports. The prediction, made on the eve of the latest Bank of England monetary policy committee (MPC) decision over interest rates, follows that of Halifax chief economist Martin Ellis, who predicted the MPC would cut the base rate "at least twice" this year. Most economists expect the MPC to lower the base rate by 0.25 per cent tomorrow, a move which could help reduce the cost of mortgages. All 60 economists interviewed by Reuters predicted this outcome, as did 58 out of 61 polled by Bloomberg. Source: http://news.hotproperty.co.uk |
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