Expert tips rate cut

The Bank of England will opt to cut the base rate of interest later this week, according to one expert.

Howard Archer, chief UK and European economist at Global Insight, is convinced that the monetary policy committee will trim the base rate to five per cent when it meets on Thursday April 10th.

Such a reduction could offer some comfort and help to the millions of consumers around the country who are finding it increasingly difficult to become debt free.

However, Mr Archer made clear that the decision is far from a certainty in light of the threat to the economy posed by inflation.

“We believe that the increasing downside risks to UK growth stemming from tight credit conditions will prompt the Bank of England to trim interest rates by a further 25 basis points,” he said.

Earlier this month, a report from MoneyExpert revealed that the typical interest rate on loans in the UK has been increasing in recent months despite the cuts in the base rate in February and in December of last year.