Interest rates ‘will fall further’

The base rate of interest in the UK will fall further over the course of the next few months, one expert has asserted.

Howard Archer, chief UK and European economist at Global Insight, has predicted that the headline cost of borrowing will be reduced by at least a quarter-point in April or May, which could offer some relief to the millions of people facing debt management concerns.

Mr Archer’s comments came after it was revealed that the Bank of England’s monetary policy committee was unanimous in its decision to reduce the base rate when the met earlier this month.

“We expect the Bank of England to trim interest rates by a further 25 basis points to five per cent in April or May, with the exact timing depending critically on just how weak the economic data is over the coming weeks,” Mr Archer said.

Earlier this week, a report from Moneyfacts claimed that increasing numbers of UK credit consumers are taking on secured long-term loans in an effort to reduce their
debt management burdens.